By Lehlohonolo Lehana.
Department of Public Enterprises Minister Pravin Gordhan says Gidon Novick’s resignation from the Takatso Consortium board should not be taken “too seriously” because He “was a minor partner in the consortium.”
Takatso Consortium is due to purchase a majority stake in South African Airways (SAA).
The investment fund Harith is the majority partner in the consortium and was responsible for raising money for the deal. Takatso is supposed to take a 51% stake in SAA. In return, they would invest R3 billion in the airline over two years.
For its part, Harith said Novick’s resignation was “appropriate” given the potential conflicts of interest between LIFT and SAA.
On Tuesday, Gordhan told Parliament’s Standing Committee on Public Accounts that it was intriguing that Novick resigned from the Takatso board, but did not resign as a partner, likening such an act to “having your cake and eating it”. Global Airways and Novick are retaining their stakes in Takatso.
“Novick was a small and relatively minor party in a transaction. Just because he happens to be somebody with experience somewhere in his past, as all of us do, doesn’t discredit everybody else, nor does it mean that what he puts on the table is something that one must take seriously,” Gordhan said.
Gordhan that despite concerns the deal was still moving along.
“Issues have emerged in the public domain over the last 24 hours, but that is an internal matter as far as the consortium is concerned and is part of the argy-bargy of such a transaction. The transaction remains both alive and live,” said Gordhan.
Gordhan said that government cannot afford to be roped into the consortium’s issues, adding that the consortium members should “sort out their own problems”.
Takatso comprises of Harith General Partners, who own Lanseria International Airport, as well as airline management firm Global Airways. Harith owns 80% of the deal, and Global Airways 20%.
Global Airways is invested in domestic airline Lift, which was co-founded by Novick.