By Lehlohonolo Lehana.
Minister in the Presidency Khumbudzo Ntshavheni said on Thursday, it was disingenuous for Takatso Consotium to call the Competition Tribunal cumbersome.
Ntshavheni was addressing the media on Thursday on the cabinet meeting outcomes.
“It is disingenuous for Takatso to call the Competition Tribunal process red-tape. It is not red-tape, it is part of due diligence that is required to make sure that there is no monopoly, but there is also no unfair, uncompetitive behaviour by business, The competition tribunal process cannot be deemed as red-tape, not at all”
“In addition, if you recall when the Takatso Consortium transaction was being considered by the Competition Commission they were told about a director or partner within the Takatso Consortium who was already running a competing airline, which is uncompetitive,” said Ntshavheni.
No uncompetitive behaviour was allowed in any business, she said.
But this is what we know so far about the deal.
Gordhan said new valuations had changed the complexity and nature of the deal. During Covid SAA’s value was sitting at R2.4 billion. But after the pandemic new valuations were conducted and the value of the airline increased.
Takatso said it pulled out of the deal because the “revised transaction” had created “risk and uncertainty.”
It said despite signing the deal two years ago, it agreed to re-negotiate the share purchase agreement.
“These negotiations have been protracted, and the resultant revised transaction structure has introduced unacceptable levels of risk and uncertainty.”
Given the magnitude and materiality of the of the proposed changes, it had also become clear that the transaction would possibly need to be re-submitted for competition regulatory processes, which would have further compounded the complexity and drawn out the process even further,” said Takatso.
It added that the new terms of the deal were not acceptable.
Ntshavheni said on Thursday Cabinet gave the green light for the deal to be scrapped because it was not in the best interest of the country.
She said they were protecting SAA and its assets when government decided to pull the plug on the deal.
eThekwini municipal workers’ strike
The cabinet has also called on law enforcement agencies to protect people’s rights to service delivery following weeks of mayhem by eThekwini metro workers that resulted in water and power outages.
The striking employees affiliated to the SA Municipal Workers Union (Samwu), the country’s largest union in the local government sector, downed tools and embarked on a wildcat strike two weeks ago demanding they be paid salary packages on par with those of council workers in other major cities.
Cabinet calls on law enforcement agencies to do all it takes to protect the rights of people, “Ntshavheni said at the post Cabinet briefing on Thursday.
Ntshavheni said the closing of critical services, such as clinics, is tantamount to sabotage and a threat to life.
“Those found guilty will face the full might of the law,” the Minister said.
The EThekwini Municipality has served 79 employees with notices of misconduct for engaging in unlawful conduct, as outlined in the Disciplinary Procedure Collective Agreement. These employees, from different units, face various charges in relation to their participation in the unlawful industrial action, which started on 27 February 2024.
Violence ahead of the May polls
The minister called on law enforcement to act against anyone who threatens violence ahead of the May polls.
The Independent Electoral Commission (IEC) has already warned members of the MK party that they could face jail time for breaching the electoral code of conduct.
Ntshavheni said cabinet didn’t entertain the utterances, as disgruntled parties have access to dispute resolution mechanisms to voice their concerns.
But she warned against any lawlessness.
“Law enforcement agencies must do their work to apprehend those who intimidate South Africans, as instructed by the president. There will be free and fair elections in this country, we will protect that with all we have.
“There won’t be mayhem. There won’t be a repeat of the July unrest in this country.”
More than 300 people lost their lives and billions worth of economic losses was recorded when riots broke out in KwaZulu-Natal, Gauteng, and other provinces.
While the unrest gained momentum days after Zuma was arrested for contempt of court, in January, the South African Human Rights Commission found there linking the arrest of former president Jacob Zuma to the 2021 July unrest.