Parliament’s lawyers to assess Gordhan’s reluctance to give details on SAA deal

Parliament’s legal services have been asked to assess the legality of public enterprises minister Pravin Gordhan’s reluctance to share with parliament details of the sale between his department and SAA’s chosen strategic equity partner, Takatso Consortium.

The legislature’s standing committee on public accounts (Scopa) asked Gordhan in November to provide details on the sale of 51% of government’s shareholding in SAA, including the sale price and management accounts.

Scopa chair Mkhuleko Hlengwa said on Monday Gordhan provided some information but cited market sensitivity for the rest of MPs’ questions.

“I am referring minister Gordhan's letter and responses to outstanding questions ... to parliament’s legal services to assess the legality and validity of the reasons advanced by the minister insofar market sensitivity being the basis upon, which some information can’t be released to the committee,” said Hlengwa.

He confirmed receiving a letter from DA MP Alf Lees who announced on Monday he would urge Hlengwa to escalate “Gordhan’s malfeasance” to national assembly speaker Nosiviwe Mapisa-Nqakula and the leader of government business in parliament, Deputy President David Mabuza, to force Gordhan to provide the information and ensure parliament takes whatever disciplinary action against him for failing in this regard.

“Failure by parliament to ensure that Gordhan provides the information as required will set a dangerous precedent whereby any minister will be able to refuse to provide information/replies to parliament whenever they do not want to do so,” said Lees.

He also wanted Hlengwa to obtain an opinion from parliament’s legal adviser on Gordhan’s obligation to provide information and reports to the committee.

He would also write to President Cyril Ramaphosa to demand he acts to ensure Gordhan provides the information.

“I will also demand that President Ramaphosa dismiss Gordhan as minister of public enterprises and not appoint him to any other cabinet position.”

At its November 15 meeting, Scopa wanted more details about the deal that will see Takatso acquire 51% of the government’s shareholding in SAA, and information about the airline’s performance since it resumed flights in September 2021.

At the time, Gordhan and SAA management told the committee they couldn’t provide detailed information, saying the deal should be viewed in the context of a close period. Gordhan said while SAA was a government entity, it operated within a competitive industry.

MPs want to know how Takatso was selected and who the other bidders were and what were they offering. They also want to know about SAA’s performance and its losses and profits since September 2021 when it resumed scheduled flights and how operations are funded.

It was decided the answers should be submitted in writing, but Gordhan indicated they would need to establish which details could be shared with MPs.

The government decided it would no longer fund SAA from the fiscus and a strategic equity partner would be sought to provide the necessary capital injection into SAA.

A memorandum of understanding was signed in June 2021. In February 2022 the sale and purchase agreement that contains the terms and conditions of the transaction was entered into but these have been kept under wraps.

Key elements of the partnership are that the Takatso consortium will own 51% of the airline and government will own 49%.

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