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Mango business rescue practitioner Sipho Sono is taking SA Airways and Public Enterprises Minister Pravin Gordhan to court – in a last ditch attempt to force the airline’s keepers to sign off on its sale, which has been delayed by months.
Sono previously took the department of public enterprises (DPE) to court to secure the release of allocated funding for the business rescue process.
Once the only profitable stateowned enterprise, Mango has been idling in business rescue for two years. SAA said: “Mr Sono is asking the court to compel the minister to approve the sale of Mango as a matter of urgency.” Mango’s suitor’s identity has been withheld by Sono.
In its statement, SAA acknowledged that Sono was unhappy about questions relating to the bidder’s identity and queries about capability.
He previously said a thorough due diligence was completed prior to the bidder qualifying for a seat at the table. “I’m satisfied with the current investor so I’m not entertaining any other suitors as, without a ministerial approval for the disposal, it would not matter how many other suitors there are,” said Sono.
SAA stood firmly behind its shareholder: “The minister has the right to seek as much information as necessary for him to act responsibly in supporting an asset disposal application.
Therefore, SAA believes that the minister is within his right to declare his dissatisfaction with the quality of information from Mr Sono to support the transaction for the sale of Mango.”
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A successful SAA may not be able to afford a successful Mango. However, SAA said in its statement the airline had nothing to benefit from a liquidated Mango. Organisation Undoing Tax Abuse’s Wayne Duvenage said the process must play out in court.
“This is something that should have been finalised a very long time ago and it is disappointing to us as taxpayers that such transactions that could benefit the taxpayer are being delayed and that every day this transaction is delayed, the ability for a competitor airline to enter the market is diminished.”
Should Gordhan continue to uhm and aah, the bidder may lose interest or, if he rejects the application to sell, it will finally mean the end of Mango.
Sono said the business rescue plan made provision for a wind down. SAA will be in for an R80 million bill if that happens.
In its statement SAA said: “If Mango is wound down, SAA is liable for the R80 million guarantee issued in favour of the Air Services Licensing Council for passenger protection liability.”
On winding down, Sono said: “Mango ceases to exist as an airline, but only as a shell. This is the last resort which I’m trying to avoid, especially that there is a credible buyer that wants to relaunch Mango and create jobs.”
READ MORE: Low cost airline Mango finds a buyer
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