Following the exposure and legal challenge by the Organisation Undoing Tax Abuse (OUTA) of South African Airways (SAA) Board members being complicit in behaviour that would have enabled a virtually unknown middleman (Daniel Muhlangu of BnP Capital) to score over R250 Million in a dodgy and highly irregular financing tender deal, SAA has announced their decision to cancel the transaction.
OUTA served court papers on SAA at 13h50 on the 21st of July 2016, causing SAA to capitulate to its demands two hours later, forcing SAA to confirm publicly that they would not be proceeding with the unlawful deal with little known financier BnP Capital. The matter was scheduled to be heard in the South Gauteng High Court on Tuesday the 26th of July 2016.
The investigation has also revealed that the joint venture partner of SAA, Inline Trading 10, had fraudulently used the Financial Services Board (FSB) number of another company in the bid documents. This follows an additional revelation by OUTA which exposed the suspension of BnP Capital’s FSB licence.
“We will be reporting the interim CFO (Phumeza Nhantsi) and Yahke Kwinana, the head of SAA’s Audit and Risk committee to SAICA, and furthermore we will lay criminal charges for fraud against Daniel Mahlangu of BnP Capital and the directors of Inline Trading 10,” says Ivan Herselman, Director of Legal Affairs at OUTA.
The Organisation has stated that this is the first part of a longer term strategy to hold the board members and directors of SAA (and other entities) to account for breaches of their fiduciary duties and responsibilities.
This is a victory for whistleblowers and OUTA’s members who believe in standing up and challenging abuse of authority. OUTA will fight to protect the rights of each whistleblower who came forward to provide OUTA with the information it required to expose this and other unlawful activities within SAA.
OUTA will use all avenues within its means to save SAA from abuse of authority and will be intensifying its investigations and legal actions as new information comes to light.