SAA: DA refers BnP’s R256 million “success” fee to Public Protector 

15 July 2016

The DA has formally requested the Public Protector to investigate the underlying grounds that SAA has selected a relatively unknown "boutique financier" BnP Capital to advise it on the restructuring of its R15 billion debt and to raise the funding shortfall, in return for an R256 million success fee, which is an entire R171 million above normal market success fees, as highlighted by SAA’s Chief Financial Officer.

It is crucial that the Public Protector comprehensively investigate SAA Chairperson, Dudu Myeni’s involvement in order to ensure that state funds are not being abused and that state entities are not being as a fiefdom by the ANC elite. In the past, we have seen Myeni make dubious unilateral decisions to introduce an unknown company into an Airbus lease deal, which has links to President Zuma. 

It is no secret that SAA is in complete financial meltdown squarely attributable to Ms Myeni. She continues to delay the release of the financial statements because of this and my colleague, DA Shadow Minister of Public Enterprises,Natasha Mazzone MP, appealed to Parliament to refuse today’s deadline being extended. 

It is alleged that the awarding of this particular tender was rigged from the very beginning. Confined tenders allow state-owned entities to award contracts to single bidders when it is considered impractical to follow an open bidding process due to an urgent need. 

It is clear that the “urgency” excuse given by the SAA Board for not going out to tender is pure fabrication, as the need for working capital to replace maturing loans was known years in advance. The process was started by ex-CFO Mr Wolf back in 2015 but was stopped by Myeni who objected to the board not being involved. 

The financial health of SAA will be restored when we see the back of Ms Myeni at the helm and when the privatisation of SAA non-performing assets are privatised. The DA will fight tirelessly to achieve these objectives, which will bring about a new prosperous horizon for the downtrodden airliner. 

Issued by Alf Lees, DA Deputy Shadow Minister of Finance, 15 July 2016