Gordhan must do ‘what he feels has to be done’, says Ntshavheni on SAA-Takatso legal threat

Minister in the Presidency Khumbudzo Ntshavheni says Cabinet will not get involved in the current disagreement between Public Enterprises Minister Pravin Gordhan and Parliament concerning the terminated South African Airways (SAA) and Takatso deal.

Gordhan has become embroiled in a contentious dispute with the Portfolio Committee on Public Enterprises after MPs decided to request the Special Investigating Unit (SIU) to probe the SAA deal, which has since been called off.

ALSO READ: Gordhan threatens legal action against Parliament to prevent SIU investigating SAA deal

Addressing the media on Thursday, the minister pointed out that Parliament had its own processes.

She emphasised that Gordhan was within his rights to take action based on what he deems necessary.

“I’m sure you are fully aware that the processes of Parliament are not part of the deliberations of Cabinet. The separation of powers doctrine still applies so we will not comment on the processes of Parliament.

“The minister is entitled to act in accordance to what he feels has to be done, but Parliament will process its work and when Parliament has resolved, in respecting the separation of powers doctrine, will then take a decision in Cabinet that is appropriate,” Ntshavheni told reporters.

Watch the briefing below:

Gordhan threatens legal action

On Wednesday, Gordhan hit back at the parliamentary committee, claiming that MPs had gone beyond the mandate to look into former Public Enterprises director-general Kgathatso Tlhakudi’s allegations about the sale of SAA to the Takatso Consortium.

The minister stated in a letter that the Department of Public Enterprises would take legal action by taking the committee’s recommendation to the SIU on review in court.

READ MORE: ‘SAA won’t collapse…prove naysayers wrong,’ Gordhan tells employees

The Department last week criticised the committee, saying the call for an investigation was misleading the South African public by insinuating impropriety regarding the SAA deal.

Tlhakudi allegations

Questions about SAA’s sale to Takatso were raised following Tlhakudi’s allegations about the deal.

The former director-general asserted, in a protected disclosure to Parliament, that Gordhan handpicked Takatso even though the consortium was not originally shortlisted as a preferred strategic equity partner to the transaction.

The sequence of events began with Rand Merchant Bank (RMB) being appointed as the transactional advisor in the initial phase.

RELATED: Numsa calls for an investigation into Pravin Gordhan’s role in the sale of SAA

It is alleged that RMB had identified four companies on its shortlist – and investor firm Harith General Partners and Global Aviation, which formed Takatso, was not one of them.

Later, the Department of Public Enterprises set up an evaluation committee to handle the shortlisting process after RMB pulled out as transaction advisers.

The other allegation made by Tlhakudi related to the undervaluation of SAA.

The Citizen previously reported that SAA was sold for a meagre R51 to Takatso for 51% of the airline’s shares.