Gordhan hits back at committee chair over calls for SIU investigation

Minister of Public Enterprises Pravin Gorfhan has questioned the motive of the committee chairperson Khaya Magaxa. Picture: Leon Lestrade/Independent Newspapers

Minister of Public Enterprises Pravin Gorfhan has questioned the motive of the committee chairperson Khaya Magaxa. Picture: Leon Lestrade/Independent Newspapers

Published Mar 22, 2024

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Public Enterprises Minister Pravin Gordhan hit back at the chairperson of the portfolio committee, Khaya Magaxa, and accused him of going beyond his mandate when the committee was investigating the South African Airways (SAA) deal.

He said Magaxa seemed to be intent on engaging in other activities other than to seek answers on the deal between SAA and the Takatso consortium.

This was after Magaxa announced that the committee has agreed to ask the Special Investigating Unit (SIU) to probe the sale of the airline.

The department of public enterprises said Magaxa has gone beyond the mandate of their work by looking into the matter.

It said Magaxa has gone on a rogue campaign to besmirch the department and Gordhan.

“In essence, Magaxa has turned a legitimate oversight exercise into a kangaroo court at which the department of public enterprises and its staff have been slandered, denigrated, and pilloried for the sake of politicking,” said the department.

“Despite Parliamentary legal adviser, Andile Tetyana, declaring in his briefing to the committee last week that he found no sign of corruption in the proposed transaction, Magaxa on Wednesday insisted that he would ask the speaker to institute an investigation by the SIU into what was the proposed SAA-Takatso deal-that has since been terminated by mutual agreement.”

It said the process has been hijacked for political purposes.

Takasto was set to buy a 51% stake at SAA, but the deal fell off a few weeks ago.

Members of the committee have been calling for answers from Gordhan since last year after former director-general Kgathatso Tlhakudi said there were irregularities in the deal.

But this was denied by Gordhan who said everything was above aboard.

Cabinet called off the deal after new valuations.

The airline was still looking for a new strategic equity partner.

SAA has over the last few years received billions in bailouts from government. In their audited financial statements submitted to Parliament it incurred losses of more than R23 billion.

The airline had not submitted its audited results in the last few years.

But the sale of the majority stake to Takatso raised concerns with parliamentarians from all sides saying the deal was mired in secrecy and wanted Gordhan to come clean on it.

They wanted all the documents on the sale of SAA to be made available to the committee.

But Gordhan had said these were confidential documents and members of the committee needed to have a closed session on this matter.

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