Photo by: Duane Daws
The Organisation Undoing Tax Abuse (Outa) on Thursday laid charges against advisory firm BnP Capital director Daniel Mahlangu as part of its ongoing investigation into State-owned South African Airways (SAA).
The organisation said it had uncovered an unlawful deal between SAA and little known BnP Capital, which stood to gain R256-million for securing a loan of R15-billion on behalf of the beleaguered airline.
After Outa’s legal challenge, SAA stopped the original transaction; however, SAA chairperson Dudu Myeni still wanted to forge ahead with paying BnP Capital a fee of R49.9-million for “costs incurred.”
“Based on evidence uncovered during extensive investigations, we decided to lay criminal charges against Mahlangu,” Outa said in a statement.
Media reports in June revealed that the controversial appointment of the finance company was not only expensive, but also put on hold an approved banking tender to Nedbank.
SAA's board approved the awarding of banking services to Nedbank on May 27, for five years, at an estimated cost of R278-million, the reports stated.
“Laying criminal charges should send a clear message that companies who make themselves party to dubious transactions, can also be held accountable for being an instrument in the decay of government’s financial systems and the looting of taxpayers hard earned money,” Outa legal affairs director Ivan Herselman said.
Outa laid charges against Mahlangu, claiming that he had failed to inform SAA that BnP Capital’s Financial Services Board licence had been suspended and that the company had had contact with a direct competitor prior to the bid.
Outa further claimed that he had fraudulently misrepresented that parties would serve on his project team when they had never even heard of BnP Capital.
Herselman said his team did not believe Mahlangu acted alone. “We know Mahlangu was not the mastermind behind this shady deal and hope that he will use this window of opportunity to reveal the truth about the true beneficiaries and the people behind this seemingly corrupt deal.
“Our evidence shows that this was an orchestrated attempt to defraud South African taxpayers of a large sum of money. We implore all those involved to come forward and tell the truth about the real beneficiaries of and masterminds behind this shady deal,” he stated.
Outa warned that it would also take legal action against those within SAA who it believed assisted in putting together the fraudulent transaction.