South Africa: Media Statement - Public Enterprises Committee to Refer Sale of SAA to Special Investigating Unit

20 March 2024
Parliament of South Africa (Cape Town)
document

The Portfolio Committee on Public Enterprises has reached a decision to refer the matter of the Takatso Consortium's purchase of a 51% stake in South African Airways (SAA) to the Special Investigating Unit (SIU) for further investigation.

The committee acknowledges the complexity of the matter and the need for a thorough and credible investigation. Therefore, the committee recommends that the SIU and/or another relevant law enforcement agencies be tasked with further investigating this matter to ensure accountability and transparency. The committee believes that the SIU is best equipped to establish and conduct a thorough investigation into the matter .

Additionally, the committee will inform the Speaker of the National Assembly about this decision. During its deliberations, the committee said it agrees with the complainant, the former Director-General for the Department of Public Enterprises, that Takatso Consortium was not included in the shortlist when the Rand Merchant Bank (RMB) evaluated the expressions of interest from potential strategic equity partners.

The committee seeks to understand the reasons behind RMB's desire to be released from its role as the adviser on the purchase. Members of the committee said that, in future, Parliament needs to play an integral and meaningful role in government transactions of this magnitude. The committee was also of the view that Parliament should be part of overseeing deals in which state assets are to be sold to the private sector.

The committee also highlighted the importance of transparency and accountability when it comes to financial matters, particularly when there is a need for funding. It is crucial for the relevant parties to appear before the committee and provide necessary details to ensure proper oversight.

Furthermore, the committee is concerned about the undervaluation of South African Airways and the need for a comprehensive evaluation of the business. It is essential to address the sequence of events that led to the undervaluation and to investigate any potential corruption or misconduct in the process.

The committee also expressed its commitment to fulfilling its oversight role and ensuring that the interests of the public are protected. The committee will continue to engage with relevant stakeholders and work towards achieving a fair and just resolution to this matter.

Read the original article on Parliament of South Africa.

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