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.
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:
EWN reporter Nthakoana Ngatane gives an update of the state capture inquiry which resumed on Monday.Read More
Business Day senior specialist reporter Karyn Maughan gives an update of what transpired at the state capture inquiry.Read More
EWN reporter Nthakoana Ngatane gives an update on who will take the stand at the inquiry.Read More
EWN reporter Nthakoana Ngatane gives an update on the Zondo Commission of Inquiry into State Capture.Read More
EWN reporter Barry Bateman gives an update on what is happening at the state capture inquiry.Read More
Deputy Chief Justice Raymond Zondo reflects on the state capture inquiry a year since its establishment.Read More
EWN reporter Bonga Dlulane unpacks former Department of Justice and Constitutional Development DG Nonkululeko Sindane's testimony.Read More
EWN reporter Clement Manyathela talks about Rajesh Sundaram testimony at the Zondo Commission of Inquiry into State Capture.Read More
EWN reporter Barry Bateman unpacks former strategy manager Francis Callard's testimony.Read More
Johan Booysen reveals dodgy dealings between businessman Tosh Mpende and the Saps.Read More