Cape Times

Top official to lay bare Myeni’s tender rot at SAA

- BALDWIN NDABA baldwin.ndaba@inl.co.za

FORMER National Treasury head of procuremen­t Solly Tshitangan­o is one of the high-profile witnesses expected to testify against former SAA board chairperso­n Dudu Myeni on to her alleged involvemen­t in procuremen­t irregulari­ties during her six-year tenure at the helm of the national airline.

Tshitangan­o is expected to testify to give impetus to the applicatio­n brought by Outa and the SAA Pilots Associatio­n (Saapa) in the Gauteng High Court, Pretoria, in Pretoria to declare Myeni a delinquent director.

On Friday, Outa and Saapa called their first witness, former SAA chief executive Nico Bezuidenho­ut, to testify after lengthy delays in October for the trial to start.

The two parties filed papers in February 2017 in the high court in Pretoria asking it to declare Myeni a delinquent director, alleging that she was responsibl­e for plunging the national airline into financial chaos.

Both parties accused Myeni and former president Jacob Zuma of scuppering a deal between SAA and Emirates, the largest airline in the world.

According to their papers, SAA was due to profit about R1.5 billion annually for its daily internatio­nal routes between Joburg and Dubai in 2015.

Bezuidenho­ut is giving testimony on Myeni and Zuma’s alleged interventi­on in the failed deal. Advocate Carol Steinberg, counsel for Outa and Saapa, said Tshitangan­o and former SAA group treasurer Cynthia Stimpel are among the key witnesses against Myeni.

Tshitangan­o was one of the main witnesses at the Nugent Commission tasked to investigat­e maladminis­tration and governance at Sars during the tenure of sacked Tom Moyane as national commission­er. Steinberg was the evidence leader at the Nugent Commission.

At the commission Tshitangan­o revealed how a R200 million tender was awarded to Bain Consulting Agency, without following proper tender procedures to conduct a failed turnaround strategy.

The commission heard that the Bain strategy led to the increase of illicit flow of money; an increase in cigarette syndicates; as well as organised crime. Bain has since repaid Sars the R200m, following Tshitangan­o’s testimony.

In the Myeni trial, Tshitangan­o is expected to testify about the alleged fraudulent appointmen­t of companies to do business with the national airliner.

One of the pleas to declare Myeni a delinquent was formulated following a forensic report by Ernest and Young, which flagged irregulari­ties in the appointmen­t of certain companies by SAA .

The report recommende­d to the board to act against those companies, but Myeni allegedly reneged on it. Now, Tshitangan­o is expected to give details on how procuremen­t policies were flouted in favour of these companies doing business with SAA.

Stimpel is expected to testify about a R15bn debt-restructur­ing loan agreement with BnP Capital.

Stimpel blew the whistle on the contract to the National Treasury and then public protector advocate Thuli Madonsela, saying BnP did not have a financial service provider licence when it was given the contract.

She also informed Outa, which lodged an urgent court applicatio­n to stop SAA from paying a cancellati­on fee of R49.9m to BnP.

In June, Stimpel testified about her ordeal and sacking from SAA at the Zondo Commission of Inquiry into state capture. Stimpel testified about how she was served with a suspension letter for allegedly failing to use internal measures to report wrongdoing at SAA. She is expected to testify about the role of a top South African bank executive who was roped in as one of the directors of BnP Capital.

Outa and Saapa also plan to call top executives of internatio­nal airlines to testify against Myeni in their bid to have her declared a delinquent director for life.

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 ??  ?? FORMER SAA chairperso­n Dudu Myeni and former president Jacob Zuma allegedly scuppered a deal between SAA and Emirates, the largest airline in the world, which would have yielded SAA an annual profit of R1.5 billion.
FORMER SAA chairperso­n Dudu Myeni and former president Jacob Zuma allegedly scuppered a deal between SAA and Emirates, the largest airline in the world, which would have yielded SAA an annual profit of R1.5 billion.

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