Mixed reaction to SAA deal

THE SAA deal to sell a 51% stake to an equity partner with government no longer to provide billions in bailouts has been received with mixed reaction from political parties.

While some parties have raised questions about the deal, saying they need more answers from government, others welcomed it.

This came after Public Enterprises Minister Pravin Gordhan said yesterday that Takatso consortium would acquire a 51% stake in SAA with the government to keep a 49% shareholding in the new airline.

Gordhan said Takatso would inject more than R3 billion into the deal.

While the ANC caucus in Parliament and the IFP welcomed the deal, the DA and UDM said the agreement had left them with more questions than answers.

ANC chief whip Pemmy Majodina’s office said this was a step in the right direction.

But opposition parties said one of the sticking points was that due diligence had not been completed by Takatso, yet the deal had been struck.

DA MP Alf Lees said the government needed to come clean on the deal. “The DA is also deeply concerned by government’s confirmation that the consortium is still to undertake a normal due diligence exercise before the definitive sale and purchase agreement is completed. This is worrying in light of the fact that Minister Gordhan seems confident that the consortium will provide R3bn in capital for the ‘revitalised’ SAA,” said Lees.

UDM leader Bantu Holomisa said there were concerns around the company involved in the deal.

“At the last glance the portfolio committee on public enterprises and the standing committee on public accounts had been dealing with SAA’S business rescue and now we hear that a majority stake has been sold, without any details of who Takatso consortium’s competitors were, how the deal was structured or how it was financed.

“How much is this 51% in SAA worth?” said Holomisa.

IFP deputy president Mzamo Buthelezi said they welcomed the announcement, but they wanted government to make public all the contracts signed with the consortium.