Minister of Public Enterprises, Pravin Gordhan, has announced the termination of the sale of South African Airways (SAA) to the Takatso consortium.
Gordhan disclosed that he presented this development to the Cabinet on Wednesday, citing new valuations that have emerged, valuing SAA at R1 billion and its properties at R5.5 billion.
The decision follows a protracted period of contention and disputes with the National Assembly’s portfolio committee on public enterprises, triggered by accusations of corruption leveled against Gordhan by former Director-General of public enterprises, Kgathatso Tlhlakudi.
Addressing the termination of the deal on Wednesday, Gordhan explained that it was prompted by diverging views and challenges encountered during negotiations, including disagreements over property rental exemptions for the new entity.
He emphasized that SAA will not receive bailouts and must achieve self-sustainability. Despite the challenges, Gordhan expressed confidence in SAA’s ability to sustain itself for the next year to 18 months.
The termination underscores the importance of ensuring fair value for SAA and securing public interest while leaving the airline in a sustainable condition compared to its state in 2019.
With 19 operational routes, SAA is poised to function effectively in its current capacity, ensuring continuity and stability.