DPE insists on DG’s involvement in SAA transaction

The Division of Public Enterprises (DPE) insists that suspended Director-General Kgathatso Tlhakudi, was associated in the choice procedure of a strategic equity spouse (SEP) for South African Airways (SAA).

This follows studies that the transaction was carried out without Treasury’s involvement.

“The Director-Normal was included in the approach. Only the sale and invest in agreement was signed by the performing DG on 22 February 2022 as the DG was on sick depart, but he was privy to the sale and purchase settlement and its contents or conditions and disorders,” the department mentioned in a statement on Monday, emphasising Tlhakudi’s involvement and condemning “deliberate misinformation” around the transaction.

Conveying the system to of attaining SEPs for SAA, the DPE says:

• RMB was appointed as transaction advisor and undertook the 1st stage of the analysis approach (original evaluations of expressions of desire)
• In August 2020, Harith General Associates produced a official expression of fascination with the DPE to come to be a bidder and was contacted by RMB to formally be a part of the course of action
• The DPE executed the second and third procedures (choosing shortlisted events to enter into strategic discussions on the possible match and graduation of owing diligence, negotiation and signing of transaction agreements). It entered into a non-disclosure settlement (NDA) prohibiting disclosure of offer you information built by interested events. (It did state on the other hand that all fascinated get-togethers built it obvious that government was dependable for all historic prices) and
• Harith Standard Partners was eager to give the funding for the new airline and partnered with Worldwide Aviation to kind Takatso Consortium. 

The DPE claims the DG was intimately included in the course of action, partaking prospective SEPs when the NDA was signed and speaking the outcome of the expression curiosity to the parties. Additional, Tlhakudi had signed Harith Typical Partners’ letter of acceptance as the most popular bidder for SAA.

“The DG was actively associated in engaging with community and worldwide functions wishing to spend in SAA. He was intimately involved in the SAA transaction and more engaged with the media in the course of action.“

The section suggests it is looking for authorized tips on motion to be taken on the leaking of official data and subsequent misinformation relating to the method.

Tlhakudi was reportedly suspended pending the completion of a disciplinary course of action, immediately after a criticism was laid against him at the Community Company Commission.

Nondumiso Lehutso is a Moneyweb intern.