By Lehlohonolo Lehana.
Minister Pravin Gordhan has accused the public enterprises committee of creating “distortions” about discussions on the majority sale of South African Airways (SAA).
The parliamentary portfolio committee responsible for overseeing the Department of Public Enterprises has been at loggerheads with Gordhan – primarily over key documents relating to the sale of a 51% stake in South African Airways (SAA) that is in the pipeline.
Tensions flared in the lead-up to and during the committee’s meeting with the minister on February 28.
The meeting was around accusations of impropriety leveled against the minister regarding the shortlisting of Takatso as SAA’s preferred strategic equity partner as well as the sale contracts – with both parties reportedly accusing one another of “bullying”.
Last week, chairperson of the Portfolio Committee on Public Enterprises, Khayalethu Magaxa, wrote a scathing letter to Gordhan – responding to several claims and requests made by the minister for the committee’s meetings.
The letter slammed an alleged absence of access to certain documents, the minister’s desire for MPs to sign non-disclosure agreements (NDAs), and his request for the committee meeting to be held in private.
One of the most contentious issues was Gordhan’s request for all MPs involved to sign NDAs.
“Members of Parliament serve at the behest of the people of South Africa and cannot be muzzled on matters of public interest,” said Magaxa.
The chairperson said that the information that the committee is requesting “not for personal gain, but for a legitimate public purpose.”
“The committee will not agree to a Non-Disclosure Agreement whose terms are only known to you as this would amount to unjustified suspension of the constitution…. [and] cannot be expected to keep quiet and walk away where there is evidence of malfeasance in the transaction under review” he added.
In response Gordhan spokesperson Ellis Mnyandu said, “The DPE [Department of Public Enterprises] is aware that the country is in electioneering season where distortions lies and outright propaganda abound in a competition for votes.”
Mnyandu said at no point did the DPE or Gordhan make an “undue or unlawful” request to the Committee for the purposes of “abrogating” its responsibility to account.
Mnyandu said Rule 184 of the National Assembly makes provisions on matters that are “confidential in terms of legislation, the nature of which is such that its confidential treatment is reasonable and justifiable”.
The Takatso transaction has been controversial since it was announced by Gordhan in June 2021, indicating that the company would acquire 51% of SAA for R51.
It would, however, make an injection of R3 billion over three years in the form of a repayable shareholder loan.
The terms of the evaluation caused speculation about whether the state would receive fair value for the airline that was grounded for two years due to business rescue and the pandemic.
Gordhan announced that another valuation exercise would be conducted in September 2023, but neither assessment has been made public.