Calls for new SAA board to be put on ice, probe into Takatso deal

The Economic Freedom Fighters (EFF) has called for the newly-appointed board of the South African Airways (SAA) to be put on ice until more information is revealed about the Takatso Consortium’s acquisition of a majority stake in the airline.

SAA’s sale to Takatso Consortium was yet again under the spotlight in parliament on Wednesday, following allegations made by suspended Public Enterprises director-general, Kgathatso Tlhakudi.

Tlhakudi wrote to National Assembly Speaker Nosiviwe Mapisa-Nqakula last Friday raising concerns about the undervaluation of SAA’s assets.

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He alleged that the R7 billion undervaluation by Takatso has been accepted by Public Enterprises Minister Pravin Gordhan and his department “without conducting their own independent valuation”, City Press reported.

Tlhakudi further claimed that Gordhan had intended to replace the SAA board, which was announced on Monday, in order to approve the transaction.

“This is some of the information which the minister, through the change of board, is seeking to suppress, as it would have a material impact on the transaction and lay bare the fact that Takatso is unfairly benefiting through this transaction to the detriment of South Africans,” the letter reads.

‘National importance’

Parliament’s Portfolio Committee on Public Enterprises was informed on Wednesday that Gordhan had to be afforded the opportunity to reply to Tlhakudi’s letter before they could decide on how to deal with the matter.

“From my interactions with the committee secretariat, this has already been given to the minister and of course the minister has furnished the committee with a comprehensive response,” Parliamentary Legal Advisor, Andile Tetyana said.

Tetyana said Tlhakudi also be given the right of reply to Gordhan’s response to his letter.

“It is only after the committee, as in case with the minister’s response and Mr Tlhakui’s reply, that the committee will be in a position to concretely address this issue. So, we are saying at this stage the issue is still premature.”

READ MORE: SAA board: ‘New board members have important skills’

Deliberating on the legal opinion, African National Congress (ANC) MP Jabulile Mkhwanazi said she understood that the allegations were of “national importance”, which Parliament could not ignore.

“I proposed that we stick to the legal advice and wait for both replies to be available to the committee,” she said.

Democratic Alliance (DA) MP Ghaleb Cachalia said it was “not acceptable” that Tlhakudi has to reply to Gordhan’s response when he was the complainant.

“In my view that covers the issue of audi alteram partem [because] one side has made allegations and the other side has replied to it,” Cachalia said, adding that “any other issue would be delaying this matter.”

“We have the facts, we have the complaint, we have the response and this committee must now do its job.”

‘Put on ice for now’

Furthermore, EFF MP Omphile Maotwe called for an inquiry into the SAA-Takatso deal to investigate the allegations.

“If we are to wait for the response [then] we need to have timelines, but I think all of us to need to take a stand that says we ought to have a parliamentary inquiry into these allegations focusing on the whole transaction and to look at the appointment of the new board… Actually suggest that it be put on ice for now until we have all satisfied ourselves that everything is above board,” she told the committee.

Maotwe said an explanation was need on why government suddenly decided to appoint a new SAA board.

“If there is any fishy things that happened then it must be dissolved and this process must be started from scratch.”

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Deal with facts, not rumours

But ANC MP Nkosinathi Dlamini questioned Tlhakudi’s allegations.

“We need to be able to deal with facts, not rumours because what has been presented is not accompanied by any evidence to support it,” he said.

“The complainant in this matter has been presenting [information] to this committee on matters of SAA not once, not twice. Some of the issues he is raising now are the [same] issues the committee have been [asking about on the sale of the airline] and he provided responses which are contrary to what he is saying now.

“This then creates another problem. Are we going to allow the committee to be used in a battle between the minister and the director-general? Because how sure are we that he was lying then and not lying now? The integrity of the [director-general] is highly compromised,” Dlamini added.

Watch the meeting below:

Later in the meeting, Tetyana explained to MPs that it was up to the committee to decide if they will give Tlhakudi a chance to reply.

“I was putting this as a preposition because remember when a started I said [my role] is to give a framework… I provide advice and of course the committee has got the right to reject or accept it,” he said.

He further said the call for an inquiry was premature.

The committee’s secretariat Disang Mocumi interjected and indicated that Tlhakudi had sent an email, where he advised Parliament to call the people involved in the SAA deal and for the committee to proceed on its own.

“It doesn’t look like Mr Tlhakudi will be sent a right of reply,” Mocumi said.

Tetyana said the committee needed to deliberate on how to map the way forward in light of Tlhakudi’s email.

The committee’s chairperson, Khayalethu Magaxa, suggested that Gordhan and Tlhakudi be called to appear in Parliament in the next meeting rather than jumping to establish an inquiry.

“I think we can then reach a determination on what the way forward is.”

Tlhakudi suspension

Tlhakudi was suspended in June last year after allegations that he failed to follow due process in the appointment of a candidate for a position that had been vacant in the department.

His application to declare his suspension unlawful and unconstitutional was dismissed by the Labour Court last October.

The Public Enterprises director-general has claimed that his suspension was due to him speaking out about corruption in the department and expressing his disapproval of the sale of SAA.

Government’s plans to sell a stake in SAA to Takatso was announced after the airline was forced into business rescue in December 2019.

READ MORE: SAA gets R1bn allocation to settle outstanding obligations

SAA exited the business rescue process in April 2021.

Takatso, which was formed by investor firm Harith General Partners and Global Aviation who own 80% and 20% of the deal respectively, is expected to pump R3 billion in working capital to the “new” SAA

The deal between the Department of Public Enterprises and Takatso will see the consortium acquire 51% of SAA for a meagre R51.

New SAA board chairperson Derek Hanekom told News24 that Gordhan was confident that the deal will be concluded within the next four months.