SAA board ignored advice and picked agency to offer R15bn loan, commission told

The state capture commission of inquiry has heard how the South African Airways (SAA) board unilaterally rejected the recommendation of a company called Seacrest to provide a R15bn loan and instructed that the finance instead be obtained from the Free State Development Corporation.

The national carrier’s financial risk head Cynthia Stimpel took the stand on Thursday.

The inquiry has turned its focus on issues of corruption and irregularities within the aviation sector.

Eyewitness News reporter Barry Bateman details some of the testimony.

An entire board resolved that the FDC would get this particular tender and that the acting COO at the time should put in all the measures to ensure that the loan is obtained. Simply explaining how irregular this was, just on the basis of the letter, there was no due diligence, no process of evaluating.

Barry Bateman, Reporter - EWN

In fact, the FDC did not have the mandate to provide any services for a national project or provide finance of this nature to South African Airways, a state-owned entity.

Barry Bateman, Reporter - EWN

Bateman says Stimpel went on to testify how she was against the way financial advisers were appointed.

Organisations and companies were brought in to provide services that were being conducted by the internal departments within the state-owned company - in this case, the financial advisers to come and try and secure loans for SAA. Stimpel telling is but we were doing this ourselves... nevertheless the board went ahead and appointed a particular company.

Barry Bateman, Reporter - EWN

She has also spoken about how all major decisions were driven by the board.

Barry Bateman, Reporter - EWN

It is said this all happened under the leadership of Dudu Miyeni.

Click on the link below to hear the full report...


This article first appeared on 702 : SAA board ignored advice and picked agency to offer R15bn loan, commission told


Recommended

by NEWSROOM AI
Read More
Activists seek African language development in universities

Activists seek African language development in universities

Elinor Sisulu says the government should prioritise indigenous languages.

ACDP claims new sex education program promotes oral sex to pre-teens

ACDP claims new sex education program promotes oral sex to pre-teens

The party says the curriculum encourages unsafe sex programmes and has given government an ultimatum to scrap the program.

Police investigating chilling discovery of 20 coffins in Orange Grove

Police investigating chilling discovery of 20 coffins in Orange Grove

Gauteng police spokesperson Captain Kay Makhubela says they have not made any arrests yet.

Probe launched into why Monument High School failed to report bullying incident

Probe launched into why Monument High School failed to report bullying incident

In a video circulated on social media, one pupil is seen dragging and pushing another.

Vanderbijlpark woman pepper-sprayed while breastfeeding

Vanderbijlpark woman pepper-sprayed while breastfeeding

Itumeleng Tsoeua says an angry motorist complained about the way she parked when they threatened her.

[LISTEN] Marikana miners remembered

[LISTEN] Marikana miners remembered

Thousands of people gathered at the koppie on Friday to commemorate the 7th anniversary of the Marikana massacre.

Popular articles
Comedy of errors suggests Standard Bank bond applicants have much to worry about

Comedy of errors suggests Standard Bank bond applicants have much to worry about

Only when consumer journalist Wendy Knowler chased Standard Bank did they admit wrongdoing that cost a client R41 000.

Dozens of families evicted from Kraaifontein farm

Dozens of families evicted from Kraaifontein farm

Plass senior researcher Dr Farai Mtero explains what the law says about evictions.

Land Claims Court ruling: 'Jubilation when judgment was handed down'

Land Claims Court ruling: 'Jubilation when judgment was handed down'

Association of Rural Advancement director Laurel Oettle praises ruling by ConCourt to uphold move to appoint a special master.

[WATCH] Ndlovu Youth Choir shines once again with latest AGT performance

[WATCH] Ndlovu Youth Choir shines once again with latest AGT performance

The inspiring South African choirU2's Beautiful Day at America's Got Talent quarter-finals.

Want to get rich? Got R100? You don’t need millions to start

Want to get rich? Got R100? You don’t need millions to start

Bruce Whitfield interviews Anthea Gardner, author of "Make Your Money Work for You: Think Big, Start Small".

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Mystery solved: Why smelly, blue sewage has been leaking into Cape Town forest

Mystery solved: Why smelly, blue sewage has been leaking into Cape Town forest

The reason for the leakage has been revealed, explains Table Mountain Aerial Cableway MD Wahida Parker.

W Cape traffic chief: Stay close to other motorists on N2 to stay safe

W Cape traffic chief: Stay close to other motorists on N2 to stay safe

W Cape Traffic Chief Kenny Africa says private security working with the department is helping curb the stonings on the highway.

Were missing SA men victims of Vietnamese organ harvesting syndicate?

Were missing SA men victims of Vietnamese organ harvesting syndicate?

Gift of the Givers fears two South African men who went missing in Vietnam may have fallen prey to an organ harvesting syndicate.