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Johannesburg – Civil rights body Outa plans to interdict the contract between SAA and BnP Capital, and will take further litigation procedures against SAA board members.
This follows reports that the appointment of BnP Capital Services by South African Airways did not follow the correct procurement procedure.
In a telephonic interview with Fin24, Wayne Duvenage, chairperson of the Organisation Undoing Tax Abuse, said that the organisation will be looking to stop the conclusion of the agreement, which could see BnP Capital shareholders earning R256m.
According to a statement by Outa, SAA could have sourced these services for one fifth of the cost, for anything between R42m and R85m.
A letter of demand will be sent to the board, asking not to undertake the transaction, said Duvenage.
In an emailed response to questions about the procurement procedure, SAA spokesperson Tlali Tlali, confirmed to Fin24 that BnP Capital was appointed by SAA to act as Transactional Advisor 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.”
BnP Capital could not be reached for comment.
Long-term plans
“The medium to long-term plan is to carry out litigation against various members of the SAA board,” said Duvenage. This will cover gross violations such as the Airbus deal which came to light last year and most importantly the loss of critical leadership.
“Directors are not acting in the best interests of SAA,” he said. Referring to dismissals and suspensions of individuals in the past, he said: “These people are suspended simply because they question behaviour of the board."
Outa will hold a media conference on Friday where it said it will reveal documentation that will show there are family links between BnP Capital and members of the SAA board, as well as other “questionable behaviour” of the board. It is likely that the whistle blower will attend the event and make a statement, said Duvenage.
“It can’t continue like this. The airline is in bad shape,” he added.
