Outa urges SAA to ditch ‘unlawful’ deal
The organisation has evidence that figures were rigged in the deal between SAA and BNP Capital.
JOHANNESBURG - The Organisation Undoing Tax Abuse(Outa) has demanded that the South African Airways (SAA) board refrain from signing an agreement with BNP Capital as the procurement process is unlawful.
Outa published evidence today showing how certain members of SAA's board managed to rig the appointment of a small finance company to help the airline secure a loan.
Yesterday the Business Day newspaper reported the airliner had agreed to pay BNP Capital R256 million- despite its head of treasury saying it would mean paying three times more than it needed to for the required service.
An ongoing investigation by Outa into the dealings of SAA has revealed that the airline is about to enter into an unlawful agreement with a small, relatively unknown financial advisory firm which has had its license suspended.
The civil organisation says SAA indicated it could not follow competitive bidding procedures but was forced to increase the scope of an existing bid awarded to BNP Capital to source R15 billion in funds at a 1.5% success fee equalling almost R260 million.
The urgency allegedly arose from the fact that R7.3 billion in loans was payable at the end of June.
Outa's Wayne Duvenhage says as an organisation they strive to find out how taxpayers money is being spent.
"When the organisations can do this a lot cheaper, then that type of behaviour is not acting in the best interest of this country. That type of behaviour is the squandering of money."
Outa says the airliner's board must be held accountable for ongoing transgressions, emphasising that this investigation is not over.