OUTA won't use Myeni's tip-off allegations in court

Johannesburg – The Organisation Undoing Tax Abuse (OUTA) said there are bigger issues to address regarding South African Airways (SAA) chair Dudu Myeni than the allegations that she got rid of board members.

This follows reports in the Mail & Guardian that Myeni got “dirt” on certain board members and then used SAA’s anonymous whistle-blower facility to lodge investigations against these executives.

Myeni allegedly emailed the tip-offs from an internet café in Sunnyside, the Mail & Guardian reported. The tip-offs resulted in the departure of former chief executive Monwabisi Kalawe and chief commercial officer Sylvain Bosc. Later chief financial officer Wolf Meyer and former acting chief executive Nico Bezuidenhout also left. 

This information was revealed to OUTA by Myeni's former board colleague, Yakhe Kwinana. Portfolio director for transport Ben Theron, confirmed to Fin24 that Kwinana had discussed this with the civil rights body in two meetings.

Although there is credence to these allegations, Theron said that OUTA cannot prove it beyond a doubt and will not be using it as evidence in a court application to have Myeni declared a delinquent director.

“We think it’s important, but it’s very difficult when you enter a legal minefield to use things that you can’t actually prove in court,” he said.

Mike Comber, reputation and risk leader at Deloitte, which manages SAA’s anonymous tip-off email, explained that the professional services provider was legally obligated to protect the client using the whistleblowing service. 

Earlier this week OUTA and the SAA Pilots Association (SAAPA) filed court papers at the North Gauteng High Court. They listed six allegations as evidence to show Myeni did not act in the best interests of SAA, as someone in her position should.

READ: OUTA turns to court to declare SAA's Dudu Myeni 'delinquent'

Theron told Fin24 by phone on Friday that OUTA is not accusing Myeni of getting rid of people.  “The issues we are dealing with are bigger than blacklisting and making phone calls about other people,” he said.

If Myeni is declared a delinquent director, she will not be allowed to hold an executive position in any South African company for a minimum of seven years, Theron said.

The court papers show that Myeni was behind the illegal appointment of BnP Capital Services as a transactional advisor, despite a recommendation by the Treasurer that it was not needed. OUTA is also taking to task the extension of BnP Capital’s mandate to include the sourcing of funds. It is also using evidence that Myeni supported the payment of cancellation fees of R49.9m to BnP Capital after the contract was subsequently cancelled.

ALSO READ: 6 reasons listed why court must declare SAA's Dudu Myeni delinquent

Outa also listed Myeni allowing the interference of President Jacob Zuma in the board’s decision to strike a partnership with Emirates. This deal would have seen SAA benefit financially by R2bn. The fallout resulted in reputational damage to SAA, said OUTA.

Myeni also misrepresented the board in a swap transaction with Airbus. Further, the findings of an EY report uncovered overpayment, irregular tender practices, conflicts of interest and informal and suspicious contracts in procurement processes. No action has been taken to correct this, since the report was released in 2015. 

Myeni's spokesperson is yet to respond to Fin24's request for comment.