Pretoria, Tuesday, 7 September 1999
The inter-departmental meeting mandated to deal with the above matter met in Johannesburg yesterday. The meeting resolved to present its recommendations to the IMCC on the Restructuring of State Assets. The meeting agreed that in accordance with the 'sale of shares agreement' the precedent conditions arising from the privatisation of the airline, was binding on the current shareholders of SUN AIR. This includes the outstanding debt of R20 million owed by Rethabile/CNI to government as well as making good o n the Employee Share Ownership Programme(ESOP).
The current shareholders should take full responsibility for their failure to effectively manage SUN AIR as it was a profitable and going-concern at the time of privatisation. In view of the turn-about in the financial position of the company, it was also recommended that there be closer monitoring of the competition issue as well as the negative impact on the public in the wake of the sudden cessation of SUN AIR operations.
The meeting noted that whilst it is government's role to create opportunities for black economic empowerment, the onus to make such ventures a success rests entirely with the post-privatisation shareholders. Government will continue exercising its responsibility to monitor the implementation of its restructuring policies, particularly in respect of black economic empowerment. It must also ensure that there is compliance with the terms and conditions of the 'sale of shares agreements' so that there is no further burden placed on the fiscus post-privatisation.
A meeting of the Inter-Ministerial Cabinet Committee on the restructuring of state assets meets in Cape Town next week.
DEPARTMENT OF PUBLIC ENTERPRISES
Contact: ZAID NORDIEN 082 453 6224