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Gordhan’s SAA truce on the rocks as business rescuer still wants to wind airline down

Details

saa thumb medium95 76BL Premium reports that the truce between the SA Airways business rescue practitioners (BRPs) and Department of Public Enterprises (DPE) Minister Pravin Gordhan is on the rocks following a statement to a parliamentary committee on Friday that the one of the BRPs intended to submit a report for the wind-down of the company.  

Last week Gordhan secured a memorandum of understanding (MOU) signed by the BRPs, Les Matuson and Siviwe Dongwana, in which they agreed to hear out Gordhan’s plans for a new airline and to hold over any sale of company assets until 30 June.  But on Friday, Dongwana told the standing committee on public accounts (Scopa) that he intended to finalise the plan for a structured wind down.  It became clear during the proceedings that Dongwana and Matuson, who are from different companies and each have their own team, did not speak with one voice.  While Dongwana took the lead and answered all questions from MPs, Matuson read a prepared statement in which he praised Gordhan’s vision and tenacity.  Gordhan, who believes that a state airline is a matter of national interest, wants to ring-fence the liabilities of the old SAA and start a new airline.  The MOU was intended to secure the co-operation of the BRPs in such a project.  Gordhan expressed his fury at Dongwana for disregarding last week’s memorandum.  He also claimed said it was "petulant" of Dongwana and Matuson to argue about provision of government funding when their task was to draw up a plan for a viable business.

  • Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)
  • Read too, Gordhan and SAA business rescue practitioners trade barbs over rescue plan, at Engineering News


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