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The director of BnP Capital was on Thursday quizzed about the suspension of the company's licence by the Financial Services Board (FSB) in a development that could have impacted its contract with SAA.
Daniel Mahlangu, the head and sole director of financial advisory firm BnP Capital, was testifying before the Zondo Commission into State Capture.
Mahlangu's company was in 2016 awarded a joint tender to advise SAA on a long-term debt funding project and later being asked to source its R15bn debt consolidation loan. The company won the contract in March ahead of several well-established companies, including Nedbank, Regiments and Deloitte & Touche.
The inquiry heard that BnP Capital was on March 23, 2016 informed by the FSB of the intention to suspend its licence.
The licence was subsequently suspended on May 12, 2016. The company was then advised to inform its clients of the suspension and transfer its business to a licence provider.
Evidence heard by the commission also highlighted a letter which BnP is said to have sent to SAA on May 13, informing the airline about the FSB decision. However, the airline, according to evidence by suspended SAA CFO Phumeza Nhantsi, had no record of such a letter.
In another twist, an email to SAA by Mahlangu's business partner on July 8, 2016, in which Mahlangu was copied, omitted to mention that the company had been stripped of its licence. The letter instead informed SAA of the intention by the FSB to temporarily suspend BnP’s licence.
READ: BREAKING: SAA terminates services of BnP Capital
Mahlangu conceded that it was incorrect of his business partner to write the letter, adding that the intention was not to mislead SAA. He said he did not understand why he had written the letter.
Evidence leader adv. Kate Hofmeyr put it to Mahlangu that the company could not have been awarded an extension of its contract with SAA, if it was known that it had no licence.
Mahlangu responded, "I agree" – but stressed that capital raising did not require a licence.
SAA on Friday announced that it had taken a decision to terminate the services of BnP Capital as a financial services provider to the airline.
