SAA Consortium partner: More questions than answers
11 June 2021
For years, the DA called for South African Airways (SAA) to be privatised. Public Enterprises Minister Pravin Gordhan has today, after long-awaited fanfare, announced Takatso Consortium as the new strategic equity partner for South African Airways. However, this may be too little too late for the bankrupt airline, and there are a plethora of concerns surrounding the deal.
The Consortium consists of Harith General partners, an African infrastructure and airports investor with strong links to the ANC and the PIC, and Global Airways, and will own 51% of SAA.
The first major concern is the fact that the board of Harith General Partners is chaired by Jabu Moloketi, who chaired the Public Investment Corporation and was also Deputy Finance Minister when Harith was granted R17 million in seed funding back in 2006. It is noteworthy that, whenever the ANC engages in public-private partnerships, it is almost always ANC bigwigs that benefit most.
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 R3 billion in capital for the “revitalised” SAA. Clarity is needed as to what will happen should the Consortium not go through with the purchase of the majority-shareholding in SAA.