MINISTER of Public Enterprises Pravin Gordhan has been accused of producing a fraudulent memorandum indicating that a former director-general led the evaluation committee that selected Takatso Consortium as the preferred strategic equity partner (SEP) for SAA.
This after former director-general, Kgathatso Tlhakudi, wrote to Speaker of Parliament Nosiviwe Mapisa-Nqakula that Parliament disregarded the information he had submitted before the Public Enterprises Committee concerning the sale of SAA last year.
He said his information was disregarded on the strength of a fraudulent Molisane memorandum produced by Gordhan.
Gordhan spokesperson Ellis Mnyandu did not respond to questions on this allegation. Parliament spokesperson Moloto Mothapo also did not respond but on Thursday twitted on X that the speaker did not received the letter.
“Following recent reports and discussions on social media platforms regarding a letter allegedly sent by Mr Kgathatso Tlhakudi, the former director of the Department of Public Enterprises, to the Speaker of the National Assembly, we wish to clarify that after thoroughly checking all email inboxes and public communication channels in the Office of the Speaker, no such letter has been received.
“While we note the widespread circulation of the copy of the alleged letter on various social media platforms, it must be noted that unless a letter is formally communicated to and received by the Office of the Speaker, it cannot be acknowledged or acted upon by Parliament,’’ read the tweet.
Parliament legal advisor Andile Tetyana last week told the Enterprises Committee in his briefing note that Tlhakudi allegedly led the evaluation committee that appointed Takatso. Tetyana said this was because Tlhakudi has been signing letters to the SEPs advising on the stage of the process.
Tetyana further said he could confirm that Tlhakudi led the committee because a memorandum addressed by deputy general director Jacky Molisane in April 7, 2021, requested Tlhakudi to note the progress in concluding the process and sign letters to the SEP advising on the stage of the process. Tetyana said it was evident that the former DG signed the memorandum on April 8, 2021.
However, Tlhakudi said he did not sign such a memorandum.
Tlhakudi, who has been accusing Gordhan of corruption and irregularities in the deal, last year told that the portfolio committee Takatso was not among the shortlisted bidders, and further said the company did not have the financial and technical capacity, but Gordhan maintained that Takatso was the best deal.
In a letter dated March 13, Tlhakudi said he presented a comprehensive submission with supporting documentation including screen shots of WhatsApp messages, news articles written by the principal of one of the component of Takatso.
He added that the Parliamentary legal officer should have shown the necessary scepticism on this memorandum considering the manner it has come to light. Tlhakudi said a simple call to him would have assisted the process.
He said the following could substantiate what he told the department.
- The Rand Merchant Bank (RMB) process produced two consortiums: ASL/Blue Sky and Fairfax Africa Fund LLC/Knighthood Global. RMB did not conclude its work and proposed that the Department engage these two consortiums further.
- The Department had separately been engaging Air-A/Lufthansa Consulting, Kenya Airways and Ethiopian Airlines.
- On January 14 2021, the department had a session with the newly appointed interim board of directors of SAA led by Mr Geoffery Qhena, and handed over the five bidders’ entities with an evaluation report to the board to take over the process as provided for by the Companies Act.
He added that Gordhan chose Takatso on his own, and set up a meeting team in the ministry to negotiate the terms of the deal with his preferred SEP. Tlhakudi said the team was led by the minister’s advisor, which in itself was irregular in terms of the Ministerial Handbook.
“I was not part of this team,” said Tlhakudi.
“The first time I became privy to the content of the deal being negotiated with Takatso Consortium was in end of November 2021 when a draft Share Sale and Purchase Agreement (SPA) was brought to me by the negotiating team to sign off as the director general of the department. I, of course, refused to sign off the said document as the terms were illogical and criminal, in my view.
“The SPA, on the same terms, was signed off on 14 February 2022 by the acting director general, in my absence as I had to go into hospital. This was a hastily arranged signing ceremony organised by Minister Gordhan,” he said.
Tlhakudi said it was also surprising that Gordhan was renegotiating the transaction despite having defended its terms for almost two years, saying that it was the best deal that government could get.
“Mr Gordhan should not be allowed to cover his tracks as he exits the stage. The relevant investigation resources of government need to be deployed to get to the bottom of this Takatso deal. And hold everyone accountable, including myself if they so determine,” said Tlhakudi adding that the integrity of the investigation by Public Enterprises Committee should not be sacrificed for political expediency to allow Gordhan to retire “unblemished”.
However, on Wednesday, Gordhan announced that the deal of SAA and Takatso had been terminated. Gordhan announced this after a Cabinet meeting, saying the deal had been terminated by “mutual consent” as there was no clear path for it.
Takatso spokesperson, Thulasizwe Simelane, said this was all understandable in an open and democratic society such as “ours”, considering the strategic political headwinds.
However, the DA said it has written to the chairperson of Public Enterprises Committee Khaya Magaxa and requested that Gordhan appear before Parliament this month and account on the cancelled deal.
The party said Gordhan must also provide a detailed account, including supporting documents of the due diligence conducted by his department, on the evaluation of SAA, especially its projected future earnings. The party said indications are that SAA was sold using an undervalued valuation.
The party also wants the viability of Takatso as a potential equity partner, especially its ability to raise the required capital, to meet the purchase agreements.
manyane.manyane@inl.co.za