Department of Public Enterprises Minister Pravin Gordhan says Gidon Novick’s resignation from the Takatso Consortium board, in addition to his causes for doing so shouldn’t be taken “too seriously” as a result of Novick “was a small and minor partner in the consortium.”
Gordhan – together with some South African Airways (SAA) executives – had been briefing the Standing Committee on Public Accounts (Scopa) on the state of the nationwide service’s affairs, in Parliament on Tuesday.
Gordhan’s feedback come after studies of Novick’s resignation as director on the consortium’s board on Monday, citing a ignorance across the progress of the deal, the consortium’s means to boost the capital dedicated and the crew’s future function within the enterprise, in response to News24. Further reports added that Novick felt the dearth of entry to data had made his function as director on the board troublesome and impractical.
Gidon Novick, Image: Moneyweb
Not my job
However, in response to Gordhan, sustaining communication with Novick and his companions isn’t his job, including that it is a function that ought to be taken on by the bulk companions within the deal.
He additional famous that authorities has maintained communication with the related entities concerning the progress of the SAA sale to Takatso.
“To the question about who has DPE been talking to, clearly we have been talking to the majority partner and it’s up to the majority partner to ensure that whoever else is involved on the side – whether its technical backup people or the drivers or their partners – to keep them informed about what is going on,” Gordhan mentioned.
Takatso Consortium – the entity primed to quickly take possession of a majority stake (51%) in SAA – is made up of native plane leasing agency Global Aviation in addition to Harith General Partners, a pan-African investor in African infrastructure.
Aviation trade heavyweight Novick additionally has ties to Global Aviation by way of its ties with low-cost airline Lift, of which Novick is the joint CEO, alongside Jonathan Ayache.
Gordhan added that Novick’s departure from the Takatso board as director has introduced some aid, because the SAA deal now avoids potential chatter round battle of curiosity.
“There is a sense of relief as well because there was a potential conflict of interest developing in the sense that if there was, let’s call it, SAA information put into the same pot from which another airline was also feeding off, the Chinese wall if you like between them would disappear,” he mentioned.
Gordhan mentioned that authorities can not afford to be roped into the consortium’s points, including that the consortium members ought to “sort out their own problems”.
Read:
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Government sells majority of SAA to personal entities
SAA continues to be a go
Amid fears that Novick’s departure might jeopardise the sealing of the SAA deal, the minister reassured Scopa members that every part stays on observe to efficiently conclude the SAA sale to Takatso. The deal, which was first introduced 18 months in the past, is nonetheless but to be finalised.
As a part of the deal, Takatso is anticipated to speculate about R3 billion into the service over the subsequent three years. Should the consortium fail to ship on this, Gordhan says the deal will be pulled off the desk.
“Enough work was done and will continue to be done – in interaction with them by DPE – to ensure that they do have the capacity to raise the R3 billion within the period they have committed to. If they can’t show the money, there is no deal and there might be other possibilities that we have to explore instead.”
Listen to Moneyweb Editor Ryk van Niekerk’s interview with Novick on why Takatso didn’t take off with the SAA (September)
