Question NW299 to the Minister of Finance
22 March 2024 - NW299
Lees, Mr RA to ask the Minister of Finance
(1)Whether, with reference to National Treasury’s presentation to the Standing Committee on Appropriations on 14 February 2024, has Takatso Consortium provided proof of funds for the Strategic Equity Partnership transaction; if not, why not; if so, what are the relevant details of such proof of funds; (2) whether National Treasury conducted a review of the Strategic Equity Partnership between Takatso Consortium and SA Airways (SAA); if not, why not; if so, will (a) the partnership give rise to any future fiscal obligations for the State, (b) he furnish Mr R A Lees with a copy of the agreement and (c) on what date does he envisage doing so; (3) whether the National Treasury will obtain a fair payment for the 51% of the SAA shares to be sold to the Takatso Consortium; if not, why not; if so, what are the relevant details; (4) what are the relevant details of non-core assets that SAA has disposed of since entering business rescue on 5 December 2019?
Reply:
1. No correspondence has been received by the National Treasury relating to the Sale and Purchase Agreement and the proof of funds necessary for the Strategic Equity Partnership transaction.
2. National Treasury did not conduct a review of the Strategic Equity Partnership transaction as it was not subject to section 54(2) of the PFMA. Once the Sale and Purchase Agreement is received by the National Treasury, it will be reviewed to determine whether it poses risk to the fiscus through fiscal obligations.
3. No details have been received by National Treasury on the compensation to be received by government for the sale of the majority shareholding to the Takatso Consortium. The details are contained in the Sale and Purchase Agreement which National Treasury was not involved in the negotiation thereof. National Treasury currently has no details related to the sale other than what has been made publicly available by the Department of Public Enterprises.
4. SAA submitted PFMA section 54 applications for the disposal of wide-body aircraft and non-core property that formed part of the old Durban International Airport. The Minister of Finance has approved both transactions.