The United Democratic Movement (UDM) has noted that the Public Investment Corporation (PIC) has said that it “…is not funding SAA”, but it confirmed that it “…owns 30% of Harith General Partners and some of the individuals involved in Takatso Consortium may previously have been associated with the PIC.” We have noted that the Government Employees Pension Fund has also denied involvement.

What this deal supposedly means is that the South African taxpayer will own 49% of SAA, which will be funded from the fiscus, but they have relinquished control.

We must, however, remember that the very same taxpayer also owns a 30% stake, through the PIC’s private equity funding, in Harith General Partners. When considering the deal this way, is it accurate to say that the taxpayer owns 49% of SAA?

Government and its partners in this deal seem to be playing with words. South Africans have been plied with SAA’s supposed future viability, sustainability, scalability and agility, and just enough information to make this deal sound amazing, with no reference made to the details of the deal, nor the small print.

The UDM wants the entire deal to be made public, so that its primary owners (taxpayers) may be privy to the details for them to judge it on merit, and not just the information they have been selectively fed. However, given government’s typical arrogance, and never taking such issues seriously, the UDM is considering legal remedies.

Issued by:
Mr Bantu Holomisa, MP
President of the United Democratic Movement