DPE have declined to reveal other offers on the SAA deal. This should not surprise. Reality is that what was on sale was the SAA residual or scrap value. Offers must have been so embarrassingly low that a friendly and leveraged deal was the only option.
The Takatso consortium "deal" must be understood from this backdrop.
Value in SAA was destroyed immediately after Jarana resigned and accelerated by a series of events/missteps that precipitated the BRP intervention.
1) Ill-advised strike by T/Uns in 2019
Value in SAA was destroyed immediately after Jarana resigned and accelerated by a series of events/missteps that precipitated the BRP intervention.
1) Ill-advised strike by T/Uns in 2019
2) Action by Solidarity to press liquidation
3) Refusal by DPE to disband Board and implement preconditions to facilitate the Ethiopian Airlines option that I advised Jarana to urgently pursue
4) ET had in principle agreed to:
a) at least 51% majority
3) Refusal by DPE to disband Board and implement preconditions to facilitate the Ethiopian Airlines option that I advised Jarana to urgently pursue
4) ET had in principle agreed to:
a) at least 51% majority
b) immediate deployment of experts to support and accelerate the turn-around plan
c) injection of between $2.00 and $2.50 Billion for operations
d) (10 -15)% employee stake
e) absorption/write-off by the state of all historical debt and retrenchment costs
c) injection of between $2.00 and $2.50 Billion for operations
d) (10 -15)% employee stake
e) absorption/write-off by the state of all historical debt and retrenchment costs
e) total release from PFMA and complete Non-Interference from the state in the airline operations
These conditions mirror the current SAA "deal".
The ET option was a perfect example of "a deal made in heaven".
But all these plans were scuppered by the
These conditions mirror the current SAA "deal".
The ET option was a perfect example of "a deal made in heaven".
But all these plans were scuppered by the
whims of the minister and DPE.
The fate of our SOEs must be guided by how the SAA case was handled. The bailouts provided post Jarana could have been better deployed in needy areas. Experts were ignored
DPE have No clue about how the airline industry works.
The fate of our SOEs must be guided by how the SAA case was handled. The bailouts provided post Jarana could have been better deployed in needy areas. Experts were ignored
DPE have No clue about how the airline industry works.
For a broader appreciation plse read : "SAA: What might have been"
via thabangjmotsohi.com/articles
via thabangjmotsohi.com/articles
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