#StateCaptureInquiry: Company defends R50m SAA success fee demand
Johannesburg - The director of a little-known company that scored lucrative deals with SA Airways defended its demand for a payment of a R50 million success fee by the national carrier.
BnP Capital director Daniel Mahlangu on Friday told the commission of inquiry into state capture that the cancellation fee was a standard practice in the financial services industry.
The company was initially contracted by SAA to raise R15 billion as part of its debt consolidation plan in 2015.
However, SAA terminated its mandate and with the help of the airline’s then-chairperson Dudu Myeni demanded that it be paid about R50m as a cancellation fee despite not doing any work.
Mahlangu told the commission chaired by Deputy Chief Justice Raymond Zondo that he was not aware that the SAA board had approved the increase of its success fee from 1% to 1.5%, which would have netted his company a further R37.5m.
He denied that he motivated for cancellation fee when no work had been done in April 2016.
“We did not ask for cancellation fee before work had been done,” Mahlangu insisted.
Mahlangu also testified that Nedbank employee Masotsha Mngadi demanded an affidavit from BnP Capital stating that he was not its employee when he got into trouble with the bank after it discovered he was involved in the deal as a representative of another company Inline Trading.
“Mngadi was trying to divorce himself from this transaction, that he was not part of it,” he said.
Mngadi claimed he never participated in the SAA transaction and Mahlangu explained that he was very much concerned when he found out he was working for Nedbank.
“One regrets the moment we met him,” Mahlangu said.