Cash-strapped SAA shrugs off tenders in R256 million deal: report


State-owned airline, SAA, has continued its dubious financial practices by awarding a R256 million award to a “boutique financier” without going through the appropriate tender processes.

This is according to a report by BDLive, citing the SAA’s internal memos and documents seen by its reporters.

According to the report, the SAA board waived tender procedures for the contract – against advice from its own treasury – and ended up paying three times what it had to for services.

The financier, BnP Capital, was initially appointed to advise SAA on the restructuring of its R15 billion debt.

The company then advised that it be hired, urgently, to raise the financing itself, securing a 1.5% success fee in the process.

The SAA board reportedly then cited the “urgency” as raised by BnP to waive the tender process. According to memos seen by BDLive, this cost SAA R256 million, when the same service could have been done for R85 million.

According to the report, five board members voted in favour of approving the contract on a confined basis, including SAA chairwoman, Dudu Myeni.

Myeni previously stopped a process initiated by the company’s former CFO in 2015, which would have consolidated SAA’s debt.

BnP Capital CEO Daniel Mahlangu told BDLive that there was no conflict of interest in having the SAA skip the tender process based on the “urgency” raised in his company’s own recommendations.

He said his company did not sign any contracts or agree on any fee structure, but had received an award letter.

SAA treasurer Cynthia Stimpel reportedly recommended to the board that the process go out to tender, and said she felt uncomfortable with the 1.5% award level.

Problematic SAA

SAA has repeatedly come under fire for its operational and spending practices, with claims that chairwoman, Myeni is core to the company’s problems.

The SAA chairperson is closely linked to Zuma, and was speculated to be one of the reasons behind the president’s decision to fire former finance minister Nhlanhla Nene.

At the time of his dismissal, Nene was clamping down on attempts by Myeni to renegotiate a deal with Airbus over the purchasing of planes, which would have enriched a third party company, and cost the airline significantly more money.

Nene also refused to give South African Airways guarantees and bailout when it was requested by the board.

There have been numerous reports saying that finance minister Pravin Gordhan has been trying to have Myeni removed from her position in the company, which has lost R18 billion over the past decade, and needs a R5 billion guarantee from government to stay afloat.

Gordhan said that SAA would not receive any guarantees from government until a new board, including a new chairperson, was appointed at the company.

Myeni said that the company still has money, and it will continue to operate without government guarantees in the future.


  1. Fantastic goods from you, man. I’ve be mindful
    your stuhff prior to and you are just extremely great. I really like what you’ve obtained right here,
    certainly like what you are saying and the way by whihh
    you assert it. You’re making it enjoyable and you continue to care for to stay it wise.
    I cant wait to learn much moree from you. That is really a terrific site.

  2. Have you ever considered about adding a little bit more
    than ust your articles? I mean, what you say is fundamental and all.
    Nevertheless think of if you added some great graphics or videos to give
    your posts more, “pop”! Your content is excellent but with pics and
    clips, this website could definitely bbe one off the greatest in its field.
    Wonderful blog!

  3. obviously like your web site but you have to check the spelling on quite
    a ffew oof your posts. Many of them are rie with spelling issues
    and I to find it very bothersome to inform the reality then again I will
    definitely come back again.

  4. Hi! I could have sworn I’ve been to this site before but after browsng throkugh some of the post I realized it’s new to me.

    Anyways, I’m defunitely happy I foundd it and I’ll be bookmarking and checking
    back frequently!

  5. Have you ever considered publishing an ebook or guest authoring
    on other websites? I have a blog centered on the same information you
    discuss and would really like to have you share some stories/information. I kow my
    subscribers would enjoy your work. If you’re even remotely interested, feel free to shoot me an e-mail.

  6. Howdy would you mind sharing which blog platform you’re using?
    I’m planning to start my own blog soon but I’m having a tough time selecting
    between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different
    then most blogs and I’m looking for something completely unique.
    P.S My apologies for getting off-topic but I
    had to ask!