A High Court judge has given the Minister of Public Enterprises, Pravin Gordhan, 30 days to come to a decision regarding the proposed sale of defunct airline Mango to an unnamed investor. And should he fail to do so, the sale will automatically be approved.

Despite ongoing business rescue efforts, proceedings have been on hold due to the alleged failure by Gordhan to make this decision on the sale.

Business Rescue Practitioner Sipho Sono, brought the case, along with trade union NUMSA, to progress the stalled process.

The Public Finance Management Act’s (PFMA) Section 54 provides an automatic approval verdict, should the executive, in this case Gordhan, fail to respond within the prescribed time.

Gordhan allegedly demanded additional information about the airline’s potential buyer. This resulted in a stalemate, as Sono said he was obliged to withhold the information as it was confidential.

Acting Judge AJ Phooko’s ruling was that the information was indeed confidential, and furthermore that Gordhan was indeed required to make the decision based on the information that was provided.

Sono has previously said that last year’s November sale application complied in full with the requirements of the PFMA.

The Court called the Minister’s inaction not only irrational but also a violation of the Constitution regarding the Minister’s responsibility to discharge his duties.

Judge Phooko said the Minister was obliged to have made the decision within 30 days of Sono’s refusal to provide further information on Mango’s potential buyer. He said the Minister’s inaction had delayed the resolution of the situation at Mango for almost a year and this could have resulted in the liquidation of Mango.

Sono has had to take the Department of Public Enterprises to court previously during the business rescue process when bailout funds were not released by the Minister, as had been promised. The DPE was compelled by the court to release the funds.

Sono told The Citizen that the delay had been to the country’s detriment. “The DPE has wasted seven months to the detriment of Mango’s unflown ticket holders and former employees that by now could have been re-employed. The cancellation and suspension of Mango’s licences is a direct result of the frustrating actions of the DPE and the Minister.”

Sono, along with co-applicant NUMSA, also argued that former Mango employees lost out on regaining possible re-employment at a revived Mango due to the delay.

The Minister of Finance, Minister of Public Enterprises, the Department of Public Enterprises and Treasury were ordered to pay costs.