Failed Takatso deal was SAA's last chance of survival

CAPE TOWN - The Democratic Alliance (DA) said that the now-failed South African Airways (SAA) and Takatso private equity deal was the airline’s last hope at survival.

The party said South Africans could now expect the carrier to go back to the usual culture of bailouts, following the failure by the Public Enterprises Department to sell a 51% stake to the Takatso consortium.

However, last week Minister Pravin Gordhan said SAA would not be getting any money from the government.

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The DA has also called for an ad-hoc committee to probe the failed deal and allegations of corruption.

Last week, Public Enterprises Minister Pravin Gordhan and Takatso announced their separation after failing to meet new requirements due to time constraints.

This means SAA is no longer up for sale but still remains operational.

But DA MP and SCOPA member, Alf Lees, said the deal was probably the airline's last chance of survival.

"The public-private partner idea probably was from an ANC point of view - the last chance of saving SAA."

He said that a special committee should further investigate, including allegations by the former director-general.

"We are calling for a fuller investigation of the whole process that was followed. So, Kgathatso Tlhakudi’s accusations will be part of such a fuller investigation.

Lees said that SAA would at some point, especially after the elections, be liquidated unless another buyer comes to the rescue.