Mango Airline's Business Rescue Practitioner Presses Minister Gordhan for a Decision Despite Pending Appeal

A plea has been submitted to the high court by Mango Airline's business rescue practitioner, Sipho Sono as seen in court papers. Sono is urging the court to compel South Africa’s public enterprises minister, Pravin Gordhan, to decide on the proposed sale of the financially distressed Mango Airlines.

This plea comes in the wake of Gordhan's request for leave to appeal the ruling that declared his failure to make a decision on Mango Airline's sale - an action deemed unlawful and constitutionally invalid.

The high court directive issued in September 2022 called for Gordhan to decide and provide reasons for the sale proposal under the Public Finance Management Act (PFMA) within 30 days. Gordhan's subsequent leave of appeal application has temporarily suspended the court's ruling.

Sono is now pressing the court to declare that its order remains valid despite the appeal application. He argues that Mango Airlines is deeply embroiled in advanced business rescue proceedings, critical to its financial survival.

He also insinuated that the investor's continual uncertainty could lead to their withdrawal, leading Mango Airlines towards an inevitable shutting down. This closure could leave a huge gap in the domestic and regional aviation market, thus inflating airfares due to the limited competition.

While Minister Gordhan maintains his decision-making rights, Sono laments the potential delay of an appeal process that could last up to four years. He states this timeframe is impermissible, adding that it could thwart the objectives of the business rescue plan.

Despite Sono's plea, the Department of Public Enterprises openly declared its opposition, vowing to contest the court's application.