SAA-Takatso deal is being renegotiated

The government’s controversial sale of 51% of South African Airways to the Takatso Consortium concluded in 2021 for R51 is being renegotiated, Public Enterprises Minister Pravin Gordhan disclosed at a hastily convened media briefing in Cape Town on Wednesday.

“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. “The DA is disappointed by the decision taken by Parliament’s Legal Services wherein they advised that parts of the SAA/Takatso deal should be shielded from public scrutiny,” the party said in a statement.

The DA says the parliamentary legal service ignored the fact that Gordhan’s request was highly irregular and infringed on parliamentary authority. “It is simply unconscionable that after spending R38,1 billion of taxpayers’ money bailing out SAA, with billions more still needed for recapitalisation, Gordhan thinks South Africans do not deserve to know the terms of the deal that SAA entered into with the Takatso Consortium.”In the hastily convened media briefing after the committee meeting, Gordhan vehemently denied any corruption in the transaction.

He said the statement made by Gordhan on Wednesday did reflect his position more than 18 months ago in the initial stages of the transaction, but that circumstances have changed.Gordhan said Takatso was selected from a shortlist of four at the time, and circumstances were very different then due to the Covid pandemic. Buyers did not have access to funding, and even those who showed interest initially had to withdraw.

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