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.