Little-known investment firm suing South African government for selling SAA for R51

Jan

Jan

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South African government sued after selling SAA for R51

South Africa’s government and national airline are being sued by a little-known investment firm, which wants the sale of a majority stake in the carrier scrapped and re-run due to a lack of transparency.

This year’s acquisition of 51% of South African Airways by the Takatso Consortium — made up of a local jet-leasing company and a private-equity firm — for just R51 ($3) was “unlawful and constitutionally invalid,” according to documents filed at the High Court in Cape Town by Toto Investment Holdings Pty Ltd.

[Bloomberg]
 
Apogee said:
Not that uncommon.

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Roman also paid 100 MILLION POUNDS for Lukaku LOL LOL LOL LOL LOL LOL
 
Is the application a dream or will our government's failure to adhere to procedure bite the taxpayer again? :unsure:
 
There are probably some "legs" to this case tbh...

But I do think some very unpleasant facts are going to come out about the deal in court even if it doesn't go the way Toto wants it to.
 
Moosedrool said:
Isn't SAA a mountain of debt?
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At 1st they said so yes, then they said the debt was written off in the sale, then later after the sale, it was found that the debt was not really written off and that the tax payer is still liable. So this is just another thievery, cashed in on the assets and smoke n mirrors about the debt. Tax payers lost out big time, not even benefitting from the sale of the assets, and is still liable.
 
Moosedrool said:
Isn't SAA a mountain of debt?
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Apparently Takatso can just choose to leave some of that debt on the taxpayer's neck.

mybroadband.co.za

SAA was sold for R51 — and taxpayers could still pay some of its debt

The deal that saw South Africa sell a majority stake in its national airline heavily favoured the buyer, according to the National Treasury.
mybroadband.co.za mybroadband.co.za

That’s partly because Takatso — made up of a local jet-leasing company and private-equity firm — has the right to assess whether any ongoing liabilities in SAA be settled by the government, the Treasury said in the document seen by Bloomberg.
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Jan said:
Apparently Takatso can just choose to leave some of that debt on the taxpayer's neck.

mybroadband.co.za

SAA was sold for R51 — and taxpayers could still pay some of its debt

The deal that saw South Africa sell a majority stake in its national airline heavily favoured the buyer, according to the National Treasury.
mybroadband.co.za mybroadband.co.za
Click to expand...

And that would be the portion where I think this case has legs... the deal is very one sided against the government really...

They sold off an entity for basically nothing, but still technically hold all the liability which would be problematic.
 
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