Lerato Mbhiza
THE Minister of Public Enterprises Pravin Gordhan says he will not be bullied into agreeing to the sale of low-cost airline, Mango.
This follows a Pretoria High Court judgement which found Gordhan’s actions on delaying the sale of the airline was ‘irrational’.
Judge Moses Phooka found that the status of the business rescue practitioners cannot remain in limbo, “eternally”. And ordered that a decision on the sale of the airline as proposed by the business rescue practitioner be made within 30 days.
“I do not see how a delay in taking a decision could be considered rational. The failure to take a decision within a reasonable time is an infringement of the fundamental right to just administrative action,” Phooka said.
On Tuesday, Gordhan said he is studying the judgment and he would proceed on the basis of the legal advice he receives on the matter. A statement viewed by many commentators as a sign of defiance.
In a brief statement, he insisted that he will not be cowed to submit to pressure that certain elements, with zero regard for public interest, sought to exert on him and the department regarding the business rescue process of Mango Airlines, a subsidiary of South African Airways (SAA).
Gordhan said he has since requested information from the business rescue practitioner to enable him to make the decision on the PFMA Section 54 (2) application including detailed business plan to assess the consortium’s viability, comprehensive due diligence, and foreign ownership details.
The Minister claimed that he was unable to make a decision based on insufficient information. Yet Mango has been in business rescue for almost two years.
“While we respect the decision of the Court, the department will ensure that we follow all the prescripts of the law in terms of how we execute our responsibility to put all our SOCs on a stable footing,” said Minister Gordhan.
According to Sipho Sono, the business rescue practitioner, Gordhan’s inaction delayed the offloading of Mango and could have forced the liquidation of the company instead of a resuscitation.
Sono accused Gordhan of deliberately delaying the process.
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