BnP Capital boss will hand over documents relating to SAA deal - OUTA | Fin24
 
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BnP Capital boss will hand over documents relating to SAA deal - OUTA

Aug 03 2018 10:32

BnP Capital's Daniel Mahlangu has agreed to hand over documents relating to its deal with SAA, the Organisation Undoing Tax Abuse said on Thursday. 

In 2016, OUTA began legal action to have former SAA board chairperson Dudu Myeni declared a delinquent director.

OUTA suspects she was involved in what it calls "dubious dealings" between SAA and BnP Capital, with Mahlangu as its CEO, that allegedly added to the state-owned airline's financial woes. 

According to OUTA, Mahlangu's attorneys have now formally agreed to comply with an OUTA subpoena demanding that Mahlangu hand over all documentation relating to BnP Capital's deal with SAA. 

OUTA also says Mahlangu initially refused to comply with the subpoena and brought a court application to have it set aside.

"Mahlangu’s continued defence and protection of Dudu Myeni is suspicious, leading us to believe that documents withheld could contain damning evidence," said Rudie Heyneke, OUTA’s Transport Portfolio Manager.

OUTA believes having "all the facts available" will shed more light on the depth of Myeni's involvement. 

"The application was set on the roll this week. However, hours before the matter could be heard, Mahlangu’s attorneys withdrew the application and have agreed to comply with our subpoena," said OUTA.

"It is important for us to have all the facts available in our quest for truth in our case against Myeni. This is a huge step in the right direction," said Stefanie Fick, OUTA’s head of legal.

OUTA's court application seeking to declare Myeni a "delinquent director" followed SAA suffering a loss of R10.5bn over a period of five years. This was subsequent to Myeni’s appointment in 2012, OUTA argued.

Among the reasons OUTA listed for Myeni being unfit to lead was the appointment of BnP Capital Services as a transactional adviser, despite this having been unnecessary, in OUTA's view.

In 2016 OUTA took SAA on over the appointment of BnP Capital, because it did not follow the correct procurement procedures, in its view. OUTA sought to stop the conclusion of the agreement, which would have seen BnP Capital shareholders earning R256m.

OUTA said at the time that the (then) SAA board failed to do due diligence on the company, which had had its Financial Services Board licence removed.

The contract was terminated only after OUTA brought the irregularities to light, according to OUTA. It claims that, following the cancellation of the contract, Myeni also supported the payment of R49.9m to BnP Capital.

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saa  |  outa  |  bnp capital  |  dudu myeni  |  aviation  |  airlines
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