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Johannesburg - The R3.5bn SAA catering deal with a consortium involving the business partner of SAA boss Khaya Ngqula's wife, has not been finalised, the airline said on Sunday.
This followed reports by the Sunday Times that Servair - a consortium co-owned by Vusi Sithole, a business partner of Ngqula and his wife, Mbali Gasi - was the preferred bidder to supply about 180 000 weekly in-flight meals on SAA's domestic routes.
The paper said the government was investigating Ngqula and the airline for "serious allegations" following the airline's preference of French company Servair as their catering company.
"In terms of the Airchefs tender, the Servair consortium has been recommended as preferred bidder following a competitive bidding process.
"It is important to note that the contract has not been finalised," SAA spokesperson Robyn Chalmers told Sapa on Sunday.
Negotiations still underway
"Negotiations are still underway with the recommended preferred bidder and approvals for the deal, including approvals relating to the Public Finance Management Act, must still be finalised," Chalmers said.
Ngqula and his wife could not be reached for comment, but according to the Sunday Times, Sithole denied that his association with Gasa had landed his consortium the contract.
"The tendering process was open and it has taken us and our French partners two years to secure this deal," he told the paper.
The Sunday Times reported that Sithole sponsored the inaugural Africa Open Golf Challenge, the rights to which belong to Ngqula's wife, to the tune of R1.2m.
Gasa is also a director of one of Sithole's companies, Netlife Golf Consortium.
Asked if Ngqula had declared his interests to SAA and if the company was made aware of Gasa's involvement with Servair bosses, Chalmers said: "Because of SA's relatively small business environment, and the fact that there may on occasion be indirect links between some businesspeople, it is critical to ensure that tender processes are competitive and vigorous, and that business interests are declared."
Chalmers could not be drawn to reveal the number of companies that had tendered for the catering deal.