Following the passing of Pravin Gordhan on Friday, 13 September 2024, social media erupted with divided opinions about his legacy as a political figure.
Story Summary:
- Former Minister Pravin Gordhan passed away at the age of 75 after a battle with cancer.
- Social media users, including prominent figures, shared polarising opinions on his legacy, particularly on the SAA privatisation deal.
- Gordhan’s family has asked for privacy, while plans for a public memorial are underway.
Social media celebrates Pravin Gordhan death
Notably, a narrative concerning Gordhan’s role in the privatisation of state-owned enterprises, such as South African Airways (SAA), gained traction.
Many users fixated on the alleged sale of SAA for a mere R51.
One of the notable figures weighing in on the matter was former Eskom Group CEO Matshela Koko, who tweeted:
“The man who collapsed Eskom, Transnet, and Denel and sold SAA for R51 is no more. The evil that men do lives after them!”
Several other social media users echoed similar sentiments, some accusing Gordhan of attempting to undermine key state institutions for private interests. A user, Pat Mdluli, expressed outrage, saying:
“He’s a crook. He wanted to sell SAA for R51… collapsed SAA so his friends and associates could take over its routes.”
The allegations of Gordhan selling SAA for R51 stem from misinformation about the failed Takatso deal, a narrative that has been amplified by far-leftist groups on social platforms.
The R51 figure stems from misinformation related to a deal between the South African government and the Takatso consortium, which was intended to take over a 51% controlling stake in SAA.
The claim is false because it misrepresents the complexities of the sale and suggests that Gordhan was deliberately undervaluing the state asset.
In reality, the R51 figure does not represent the sale price.
The deal with Takatso included a commitment from the consortium to invest R3 billion into SAA over three years.
This was meant to fund operational costs and aid in the airline’s recovery following its near-collapse and subsequent business rescue process, which was worsened by the COVID-19 pandemic.
The sale was not for cash upfront but instead aimed at revitalising the airline and bringing in fresh capital.
Understanding the SAA-Takatso Deal
The Takatso consortium comprised two primary partners: Global Airways and Harith General Partners.
While Global Airways had aviation expertise, Harith is a private equity firm focused on infrastructure investments.
The deal, which sought to reduce the financial burden on the South African government, would have shifted the majority ownership of SAA to the private sector.
However, the transaction was delayed due to disagreements on valuation and terms.
Eventually, negotiations broke down, and the deal was abandoned earlier in 2024.
Gordhan confirmed that the state would retain full ownership of SAA but assured the public that the airline was on the path to recovery, with an improved valuation and alternative means of securing financing without burdening the government’s fiscus.
In fact, in its earnings report released earlier this week, the national carrier recorded R7.3 billion in passenger revenue for the 2023/2024 financial year, showcasing its steady recovery since resuming operations in 2021.
This marks a 49% increase from the R5.6 billion reported in the previous year.
“Our airline has grown significantly in the past two years, expanding our routes and fleet while generating sustainable revenue,” Interim CEO Professor John Lamola said.
Gordhan cause of death revealed
Pravin Gordhan passed away in the early hours of Friday, 13 September 2024, following a brief but brave battle with cancer.
His family confirmed that he was surrounded by loved ones and close political allies.
Gordhan had announced his intention to retire from active politics earlier in 2024 after decades of service in various ministerial positions, including Minister of Finance and Public Enterprises.
In a press release, the Gordhan family requested privacy during this time, while close comrades and political figures paid tribute to his decades of public service.
