News24.com | Dodging the real issues: Gordhan slams explosive claims by suspended DG over SAA deal

Gordhan tells Parliament that, in his view, Tlhakudi is trying to escape the consequences of the disciplinary proceedings.

• Suspended Public Enterprises director-general Kgathatso Tlhakudi claims he is being targeted because of allegations he made against Minister of Public Enterprises Pravin Gordhan, and due to the latter's "vindictive nature".
• But in a letter to the speaker of Parliament, Gordhan denies these allegations, claiming Tlhakudi is trying to dodge disciplinary proceedings.
• Tlhakudi claims Gordhan sidelined him, acted irregularly in the SAA business rescue process, and engaged in cronyism.
• For more financial news, go to the News24 Business front page.

Public Enterprises Minister Pravin Gordhan has hit back at suspended director-general Kgathatso Tlhakudi in a spat that, most recently, saw the latter reportedly making explosive claims regarding the proposed South African Airways (SAA) takeover deal.

In a letter dated 27 March and seen by News24, Gordhan says there is absolutely no merit in allegations made against him by Tlhakudi, who is facing disciplinary proceedings for misconduct, due to allegedly interfering in a recruitment process at the Department of Public Enterprises.

Tlhakudi turned to the courts to challenge his suspension and disciplinary proceedings, claiming he had been targeted due to "protected disclosures" about Gordhan.

The suspended DG claims the minister sidelined him, acted irregularly in the SAA business rescue process, and engaged in cronyism to boot.

According to Tlhakudi, assets belonging to the embattled airline – set for takeover by the Takatso Consortium in a long-awaited deal that is yet to be concluded – were undervalued by some R7 billion, with a new board allegedly lined up to approve the transaction.

READ | Suspended DG slams SAA deal

But Gordhan has clapped back, telling Parliament that Tlhakudi is relying on the so-called protected disclosure to dodge disciplinary proceedings. The Public Enterprises Minister believes it is an attempt by Tlhakudi to delay the process until his fixed-term contract with the DPE expires at the end of July 2023.

Denying the suspended DG's claims, Gordhan asks if Tlhakudi believed something was amiss with the SAA business rescue process, why is he only raising it after the fact?

Moreover, Gordhan says, he is in any case not party to the disciplinary process, since it is headed by Minister of Justice Ronald Lamola, as instructed by the Presidency.

Face the music

Gordhan believes Tlhakudi is attempting to delay the proceedings until his fixed-term contract with the DPE expires at the end of July 2023.

In court documents attached to Gordhan's letter to Parliament, Tlhakudi claims he (Tlhakudi) made protected disclosures about how Gordhan handled the business rescue process of South African Airways (SAA) and the decision to sell a majority stake to the Takatso Consortium.

Tlhakudi claims the way Gordhan handled it was "intended to benefit a few privileged people who had been favoured and handpicked by him (Gordhan) irregularly and unlawfully".

Tlhakudi claims his suspension and the disciplinary proceedings are due to Gordhan's "vindictive nature" and not for any legitimate purposes.

So why was Tlhakudi suspended?

In his letter to the Speaker, Gordhan claims the allegations made by Tlhakudi concerning the selection process of SAA's strategic equity partner and the airline's restructuring and business rescue processes are unfounded and without merit.

Gordhan further stresses that Tlhakudi's suspension and the disciplinary action against him are entirely unrelated to the SAA matter.

The disciplinary action stems from a complaint received by the Public Service Commission concerning alleged unethical conduct by Tlhakudi regarding a recruitment process for the position of director: security and facilities.

The complaint is that Tlhakudi did not want the successful candidate appointed.

Gordhan says it was his duty to initiate an investigation into the complaint and refer the matter to the Presidency. Following the investigation, Tlhakudi faces a disciplinary process to test the allegations.

The president delegated the process to Lamola.

Detractor factor

Charges against Tlhakudi in terms of the disciplinary proceedings include breach of duties, usurping the power of the recruitment panel, exceeding his delegation of authorities, and abuse of power, among others.

Gordhan writes:

According to Gordhan's letter, Tlhakudi has purportedly referred his allegations against Gordhan to the Portfolio Committee on Public Enterprises. The EFF has asked for an inquiry into Gordhan's conduct concerning Tlhakudi's claims.

Gordhan suggests the committee ask Lamola for an update on the disciplinary process.

In September 2022, Tlhakudi brought an urgent application to declare that his continued suspension was unlawful, among other things.

However, the court found his attack, particularly on Gordhan, consisted of unsubstantiated allegations. Tlhakudi, for his part, claimed Gordhan was "brazenly intent on destroying (Tlhakudi's) career" and that he was "abusing his powers".