Being ‘in the dark’ prompts Takatso Consortium CEO to resign

The CEO who formed an integral part of the Takatso Consortium, South African Airways’ (SAA) strategic equity partner, has resigned.

Gidon Novick’s resignation, confirmed by News24 on Monday, could negatively affect the partnership deal between Takatso and the ailing state-owned enterprise.

‘In the dark’

Novick, who has resigned as the CEO and board member of the consortium, told the publication the reasons for his resignation included being left “in the dark” about the progress of the transaction of 51% of SAA shares being sold to Takatso.

Another critical lack of communication to the board, according to Novick, has reportedly been the ability to raise the R3 billion Takatso committed to, “and our role in the business going forward”.

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.

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Information still withheld

He told Business Maverick that Harith was the reason for his departure from Takatso, due to it withholding information to minority shareholders.

This information is also reportedly being withheld by Department of Public Enterprises Minister Pravin Gordhan.

Sunday World reported that Gordhan recently dodged questions posed by standing committee on public accounts (Scopa) members on the Takatso Consortium deal.

Democratic Alliance MP Alf Lees told the publication Gordhan had either defaulted in providing full details or refused to divulge any information on the deal for the past 17 months.

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This despite President Cyril Ramaphosa saying during parliamentary presidential reply session that details on the deal should be made public.

In September, Toto Investments, one of the companies that bid for SAA, is suing Gordhan for failing to provide them with documents detailing his decision to sell 51% of the airline.

Toto Investment lawyers told News24 at the time Gordhan only provided “217 pages of materially deficient documentation”.

It added that Gordhan is required by the court to give a record on the decision to select the Takatso Consortium as the preferred bidder for SAA.

SAA is expected to brief the standing committee on public accounts in the national assembly on progress made by management since their last meeting with the committee, and provide feedback on investigations conducted by the Special Investigating Unit.

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Compiled by Nica Richards.