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Johannesburg - Nedbank has suspended a senior employee Masotsha Mngadi because of his involvement in financier BnP Capital and its fund raising transaction with SAA, Sunday Times reported.
Business Times reports it has seen e-mails Mngadi sent to SAA on behalf of BnP Capital inquiring about the fund raising bid. Nedbank was aiming for the same bid to raise R15bn to settle SAA's debt. If successful, BnP Capital would earn a fee of R256m. This was despite SAA treasurer Cynthia Stimpel pointing out it could be raised at a lesser cost.
The Sunday paper also said it has obtained documents showing in May five SAA board members - including the chair Dudu Myeni - voted to approve the award to BnP on a confined basis - in other words allowing a bid to be awarded to a single bidder due to urgency.
According to the Financial Services Board (FSB) BnP Capital's licence to operate as a financial services provider had been suspended earlier this year.
Fin24 reported earlier that Civil rights body Outa plans to interdict the contract between SAA and BnP Capital, and will take further litigation procedures against SAA board members.
In response, SAA spokesperson Tlali Tlali, confirmed to Fin24 that BnP Capital was appointed by SAA to act as Transactional Adviser and "that appointment conformed to prescribed procurement processes".
"SAA is satisfied that it applied its mind and took into account all relevant and/or material factors before making its decision. We are confident that the process followed was compliant with governance framework,” said Tlali.
