Public Enterprises Minister Pravin Gordhan says the sale of shares in South African Airways (SAA) was aimed at ensuring that the State-owned airline is saved and does not undergo liquidation.
Gordhan was addressing Parliament’s Standing Committee on Public Accounts (SCOPA) on Tuesday.
A Strategic Equity Partnership with Takatso Consortium is expected to pave the way for the sale of some 51% of the airline’s shares, pending regulatory and other approvals.
Gordhan told the committee that government’s fiscal position does not allow for SAA to continue being funded purely from the public purse. He, however, said that government will still hold a strong stake in the airline.
“The reality is that there are going to be times when the State doesn’t maintain all the funding to manage whatever it is holding on to or provide additional investment for a particular entity, enterprise or business to actually grow.
“So this is not privatisation in the sense that we are not selling 100%. Firstly, we’ve got 49%. Secondly, we’ve got the golden share and the golden share means we own the brand, and headquarters [are] in South Africa. Transformation of the staff and management will grasp area. All of that is prescribed in the purchase and sale agreement.
“We execute not maintain the financial capacity to hold onto everything as the State but our intention was never to privatise. Our intention was to save the airline. Our intention was to avoid liquidation because then everything would believe been sold to the private sector. So this was ultimately the best that was possible within the limitations that we had,” he said.
The Minister explained government’s reasons for seeking out a Strategic Equity Partner for the airline.
“The additional partner is required in order to establish in money which will enable the airline to expand… in a systematic way, based on commercial criteria and a reasonable chance of success of those routes paying back… its own cost for a start, let alone the profits it would fabricate.
“The issue is not the current way of operating. The issue is the future growth,” he said.
Answering questions on the consortium’s ability to invest some R3 billion into the airline, Gordhan said there is no acumen to doubt that it will not honour that agreement.
“We, at this point in time, gain no acumen to doubt Takatso’s bona fides. We believe that they will deliver cash when it is required and that they will maintain to solve their own problems, in terms of their own minority shareholders.
“In terms of timelines, the Competition Commission process took about 10 months. The competition tribunal is set for the third week of June…and then there are a few regulation hoops to cross. I imagine that by the terminate of July/August, we should maintain completed all the regulatory requirements.”
The Minister said although the aviation industry has endured a challenging period as a result of the COVID-19 pandemic, the sector is recovering.
“Today we find ourselves in a position where at least there’s some more competition in the aviation industry, locally particularly.
“As SAA grows and the acquisition of the Strategic Equity Partner is concluded, we will acquire even more effective competition as well. The beneficiary at the stay of the day will be the traveling consumer more than anybody else,” he said. – SAnews.gov.za
Squatch
There was a postman who is always happy. in the other side there is harry who would just stares at the happy postman everyday and asks himself \”What\’s the secret of this man\”.
One day Harry decided to stop the postman and ask him why he\’s always smiling and happy, what he did.
the postman answered:\”Whenever I\’m handing a mail to a women I kisses her and I get more than just a kiss sometimes.\”
Harry liked the idea and went to a poste office and proposed for the job then he got it . In his first delivery Harry was so excited try the kissing thing out, and as he thought, there was a hot women in front of the first door, he went directly towared her and pasted her a kiss staight in the lips, in the middle of that her husband suddenly appeared in front him and asked:\”WTF ARE YOU DOING.\”
\”I\’m just delivering a \’kiss\’ was sent from China\” Harry answered in a sporadic tone.
\”Very nice, you came on time, I want to send a \’Fuck\’ with you to South Africa\” the husband responded while draging Harry into the house.
freak
A baby was born in South Africa. The village was very poor, and the makeshift hospital didn\’t have some necessary equipment.. such as scales.
The father however, was desperate to know the newborn baby\’s weight. After quite a bit of asking around, the hospital\’s chairman came up with an idea.
\”Five miles west, there\’s a butcher shop. The owner deals with meat, he should have a rather precise scale. You could just put your baby on the meat scale, and the weight reading you\’ll get should be pretty accurate.\”
And so the father departed westward. After much walking, with his newborn child cardled safely in his arms, he finally arrived at the butcher shop. He explained his dilemma to the shop owner, to witch the latter replied:
\”Don\’t worry, friend. It\’s not even a problem, I\’ll check it for you, free of charge.\” And so he took the child to the back, where the scale was located.
The father heard rumbling noises, and some scraping.. About a minute later the butcher came back.
\”About three pounds boneless\” He said.