State Capture Inquiry

BNP Capital tried to secure R50m cancellation fee from SAA, commission told

South African Airways (SAA) is in the spotlight at the Zondo commission of inquiry into state capture this week.

Former CEO Sizakele Mzimela concluded her testimony and told the commission that six board members resigned simultaneously because then public enterprise minister Malusi Gigaba undermined their authority.

Read: Former CEO tells state capture inquiry Malusi Gigaba was too hands-on at SAA

She said in 2012 the airline's chairperson Cheryl Carolus resigned, nearly plunging the airline into crisis after not seeing eye to eye with Gigaba on SAA’s Johannesburg-Mumbai route.

It was BNP Capital director Daniel Mahlangu's turn to take the stand on Thursday.

The commission heard that BNP Capital was contracted by SAA to help it source R15b loan agreement and when the agreement was cancelled, BNP Capital tried to secure a cancellation fee of R50m.

To discuss these testimonies, Ray White on the Xolani Gwala Show chats to Eyewitness News reporter Bonga Dlulane.

He is telling the commission about how SAA contracted a little known entity like BNP Capital in this massive deal. In 2016 SAA was looking for money and they needed a transaction advisor to source that kind of funding. BNP Capital formed a consortium with Inline Trading, an entity that belonged to Masotsha Mngadi who was the advisor to former SAA chairperson Dudu Myeni.

Bonga Dlulane, Reporter - EWN

The commission is trying to ascertain why this company got a contract without SAA without producing financials and why when the loan agreement deal fell through, BNP Capital required a cancellation fee.

Bonga Dlulane, Reporter - EWN

Listen below to the full report:


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