LETTER: SAA deal hits political turbulence

The spokesperson for the department of public enterprises, Ellis Mnyandu, should observe the boundaries and protocols of addressing elected officials in public (“Gordhan, committee chair in war of words over failed Takatso-SAA deal”, March 22).

Mnyandu comes across as a hired gun on a relentless campaign to vilify public enterprises portfolio committee chair Khaya Magaxa. He has the temerity to unleash a diatribe against Magaxa, saying he “has turned a legitimate oversight exercise into a kangaroo court at which the [department] and its staff have been slandered, denigrated and pilloried for the sake of politicking”.

That’s an insult to the intelligence of the committee members. Public enterprises minister Pravin Gordhan has not hitherto been frank about how SAA’s preferred strategic equity partner was selected, apart from hiding behind the executive as if it has absolute powers to establish a confidential precedent.

Yet plans to sell equity in SAA date back to 2007, when the possibility of a partnership was explored to wean the airline from the continual bailouts. What really irked many was the arbitrary revocation of the 51% acquisition of SAA, which reeks of impropriety.

Gordhan intervened in favour of a wannabe equity partner without a proper due diligence. Hence SAA finds itself having taken two steps forward and one step backwards. It is common cause that every acquisition has its own risk. It thus follows that risks increase even more if the transaction is “guesstimated”.

Morgan Phaahla 
Ekurhuleni

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