SAA fraud report to reveal all

Johannesburg - A KPMG investigation into tender fraud and procurement activities at South African Airways (SAA) will be released on Tuesday and could mean bad news for its former top executives, including Khaya Ngqula and André Viljoen.

The two-phase investigation was launched in February 2009, after Ngqula left the airline under a cloud but with a severance package of R8m.

The first phase was an investigation into allegations that Ngqula had been involved in various irregularities and tender fraud. The second phase looked into other procurement and management issues at SAA, including all purchases of significant value made by SAA from the 2003/04 financial year to February 2009.

During this period Viljoen had been the CEO. Other names will be disclosed in the report.

SAA chairperson Cheryl Carolus will discuss details of the investigation with the media on Tuesday as well as steps to be taken by SAA, including disciplinary measures against offenders to recover money where possible.

It is understood that SAA has already appointed attorneys and has advised those mentioned in the report to obtain their own legal representation.

Although the report contains some unsavoury findings, it does not indicate large-scale irregularities, Carolus told Sake24.

One of the allegations levelled at Ngqula was that his wife had been part of a consortium that received a large contract for supplying meals on domestic flights.
 
Shortly before Ngqula received his severance package, Brigitte Mabandla, the former minister of public enterprises, appeared before the parliamentary economic sector sub-committee, where she explained the terms of Ngqula’s resignation.

If the probe finds any proof of malpractice, SAA and government will be able to institute civil and/or criminal proceedings against Ngqula, said Mabandla.

 - Sake24.com