By Lehlohonolo Lehana.
The Department of Public Enterprises (DPE) insists that suspended Director-General Kgathatso Tlhakudi was involved in the selection process of a strategic equity partner (SEP) for South African Airways (SAA).
This follows reports that Tlhakudi was not involved in the SEP process.
“The Director-General was involved in the process. Only the sale and purchase agreement was signed by the acting DG on 22 February 2022 as the DG was on sick leave, but he was privy to the sale and purchase agreement and its contents or terms and conditions,” the department said in a statement on Monday, condemning “deliberate misinformation” around the transaction.
Fin 24 reported that the department’s Minister Pravin Gordhan cut out advisors and failed to consult with National Treasury on the impending SAA/Takatso deal.
The department is seeking legal advice on action to be taken on the leakage of official information and the peddling of false and distorted information about this process,” said the DPE.
The article also alleged that Gordhan and some of his officials flew solo on the selection of Takatso as a strategic equity partner for SAA, contrary to the widely held impression that RMB was the transaction advisor on the deal.
The DPE has since clarified: “The Rand Merchant Bank (RMB) has been appointed as a transaction advisor to select a Strategic Equity Partner (SEP) for SAA.”
The department says RMB has already undertaken the first phase of the evaluation process which included the initial evaluation phase of expressions of interest.
On 24 August 2020, Harith General Partners notified the DPE of its interest in becoming a bidder.
RMB then contacted Harith the following day to formally join the process.
The second and third processes were conducted by the department. The processes entailed the selection of shortlisted parties to enter into strategic discussions on the potential fit and the commencement of due diligence, negotiation and signing of transaction agreements,” said the department.
The DPE then entered into a non-disclosure agreement with Harith, prohibiting the disclosure of any details related to the process.
The DPE was at pains to emphasise that the Covid-19 pandemic had a devastating effect on global aviation, which became increasingly debilitating worldwide.
“As a result, some of the parties who had expressed an interest in the process could not provide the capital required to operate the airline.
All interested parties made it clear that the government had to take responsibility for all historic costs inclusive of bank debts,” said the DPE.
Tlhakudi was suspended pending the completion of a disciplinary process, after a complaint was laid against him at the Public Service Commission.