South African Airways (SAA) will face liquidation if the strategic equity partnership deal with the Takatso Consortium does not work out, the Department of Public Enterprises (DPE) told Parliament on Wednesday.
The DPE and SAA briefed the Portfolio Committee on Public Enterprises on SAA's long-overdue 2017/18 financial report. During question time, committee members wanted to know why the Takatso deal has not been finalised - more than a year after it was first announced.
"I hear the level of frustration about delays in concluding the Takatso deal. The challenge does not lie with Takatso. It is that Takatso can only come in and take over the 51% shareholding once all the regulatory processes are completed. It will take at the very latest until the end of March next year. Liquidation will be the outcome if the transaction fails so it is important to conclude the deal," the DPE's acting director-general Jacky Molisane told the committee.