Gupta brothers linked to SAA mess

NO THANKS: EX-SAA CEO TELLS HOW HE TURNED DOWN 500K ‘WELCOME TO THE FAMILY’ GIFT

State capture inquiry interested in parallels to previous testimony.

Former South African Airways (SAA) and Eskom board chair as well as former acting chief executive at the airline Vuyisile Kona alleged that three high-profile people were present at a meeting in Saxonwold where Tony Gupta allegedly offered him cash as a welcome to “the family”.

They were Duduzane Zuma, son of former president Jacob, Tshepiso Magashule, son of ANC secretary-general Ace, and Siya Mahlangu, advisor at the time of former minister of public enterprises Malusi Gigaba.

Kona yesterday gave testimony at the Commission of Inquiry into State Capture, chaired by Deputy Chief Justice Raymond Zondo.

That meeting took place on or around 29 October 2012, the commission heard.

“... it still haunts me today,” Kona said, adding he found it strange and uncomfortable that Mahlangu “pushed” him to meet with the Guptas, whom he knew nothing about and had not met.

At the time, Kona was handling a number of issues at SAA, including putting together a turnaround strategy for the airline.

He said he had tasked the supply chain unit at SAA with appointing a consultancy company to assist with compiling the business plan required to secure a R5 billion guarantee from Treasury.

Three companies, including Lufthansa Consulting and Gupta-linked McKinsey, provided quotes. The former was awarded the contract at R6 million after McKinsey submitted a quotation of R40 million, the commission heard.

Kona said he initially resisted Mahlangu’s insistent requests to meet the Guptas, suggesting they should come to his office, but that suggestion was dismissed.

Kona and Mahlangu’s cellphones were taken from them when they arrived at Saxonwold for the meeting and he said he was then led into a room where Tony Gupta introduced himself, Zuma jnr, whom he said he knew from television, and Magashule jnr, whom he said he knew from the Free State.

The meeting at first was cordial, the commission heard.

“It was a very strange conversation, like I was being welcomed to the family,” Kona said.

He said Gupta did all the talking.

Discussions eventually revolved around the challenges the airline faced and Kona quoted Gupta as saying: “I have to welcome you to the family, you are now part of the family”, which he found confusing.

Kona reported Gupta went on to say “they” were aware that he had not been paid – either as SAA chair or acting CEO – and then offered him R100 000 as “a welcome to the family”. Gupta then reportedly said: “We look after each other.”

Kona turned down the cash. Gupta allegedly gave him a cynical look and asked him why.

He then increased the offer to R500 000, which Kona said he also rejected.

Gupta’s “demeanour stopped being friendly to more businesslike – more serious”, Kona said.

Just before the meeting ended, the director-general of public enterprises at the time Tshediso Matona was called and asked to explain, the commission heard. As he was leaving Saxonwold, Kona received a call from Matona asking him why he had awarded the contract to Lufthansa. Kona said he explained the supply chain had taken the final decision.

A week later, a letter from the public enterprises department was sent to Kona with a request to investigate the appointment of Lufthansa, he said.

Though the probe did not find any wrongdoing, Kona said, he was prevented from allowing Lufthansa to commence its work.

Kona told the commission that thereafter he felt he was persecuted by officials from the department of public enterprises and colleagues on the board.

Gigaba eventually told the board that it should put together a turnaround plan, which Kona said he wanted no part of.

Zondo noted that it was interesting that others at the meeting had not spoken because it corroborated previous testimony by former deputy finance minister Mcebisi Jonas and former Free State MEC Mxolisi Dukwana on two separate meetings at the Gupta residence.

Kona later confided to the acting SAA board chair Dudu Myeni, who he said was more interested in what he had drunk and ate, warning him not to “go around drinking and eating, these people practice witchcraft”.

Kona said he assumed Myeni then called because he had received a text message from Mahlangu, which was read at the commission: “Uyangithengisa [you are selling me out]. Why did you let her know that you knew where she was going? You will compromise the mission.”

You will compromise the mission ...