By Lehlohonolo Lehana.
The government’s controversial sale of 51% of South African Airways (SAA) to the Takatso Consortium concluded in 2021 for R51 is being renegotiated, Public Enterprises Minister Pravin Gordhan announced.
Gordhan disclosed at a hastily convened media briefing in Cape Town on Wednesday.
The parliamentary portfolio committee on public enterprises has been trying for an extended period to get details about the transaction, and it was only under threat of subpoena that Gordhan relented – provided that the committee meeting to discuss it be held behind closed doors and members sign non-disclosure agreements.
The committee – which is investigating allegations by the former director-general of the Department of Public Enterprises that Gordhan manipulated the transaction to benefit people he favoured – requested guidance from parliament’s legal advisors on whether the content warrants secrecy, and the advisors backed it on Wednesday.
Gordhan said there are legitimate reasons why the details of the deal must be confidential.
“This is a live transaction. It’s in a commercial setting. It’s a setting where there are competitors who use the information. And until the transaction is completed and fully negotiated.”
Gordhan insists on secrecy
In a letter to committee chair Khayalethu Elvis Magaxa on Wednesday morning, Gordhan insisted that the documents and their contents can neither be made public nor recorded or photographed.
“Please note that negotiations on this transaction [are] continuing to take cognisance of current market conditions and revised valuations, “Gordhan wrote.
“There is no certainty as to the outcome of this process. However, in the absence of an agreed, amended Sale of Shares Agreement, the conditions of the original Sales of Shares Agreement remain legally binding.
He also warned the committee: “I have been advised that should the committee release the documents; the committee will be liable for any possible claim or liability and not the department.”
The committee decided to proceed on the basis that the documents are to be treated confidentially.
DA decries decision on irregular request
This prompted the Democratic Alliance (DA) to withdraw from this and future in-camera discussions on the matter.
“The DA is disappointed by the decision taken by Parliament’s Legal Services (PLS) wherein they advised that parts of the SAA/Takatso deal should be shielded from public scrutiny,” the party said in a statement.
“This a significant blow to parliamentary transparency and accountability, further providing cover to Pravin Gordhan’s nefarious attempts to keep a veil of secrecy over the SAA/Takatso deal.”
“In light of this new development, the DA will not be participating in any further consideration of the SAA/Takatso deal until Parliament opens up such deliberations to the public and releases the SAA/Takatso Share Sale and Purchase Agreement.”
The DA says the parliamentary legal service ignored the fact that Gordhan’s request was highly irregular and infringed on parliamentary authority.
“From the onset, the DA has refused to accede to repeated attempts by Gordhan to co-opt Parliament into his long drawn-out plan to maintain a veil of secrecy on the SAA/Takatso deal.