Former SAA head of treasury Cynthia Stimpel told the state capture inquiry on Thursday that a little-known company, BnP Capital, stood to earn a success fee of about R300m for sourcing a loan for SAA - more than three times the normal market fee.
Instead, the board ordered that SAA appoint the Free State Development Corporation to provide the funds for SAA's capital restructuring project. However, after a due diligence was conducted, SAA found that SeaCrest would not be providing the capital directly; the majority of the money would instead be supplied by a company called Grissag.Grissag was to provide SeaCrest with the funds at a 4% interest rate, meaning that SeaCrest would earn the 1.8% difference in interest fees when it forwarded the money to SAA.
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Former SAA treasurer says board 'ignored' R15bn loan recommendationsFormer SAA head of treasury Cynthia Stimpel told the state capture inquiry on Thursday how Dudu Myeni and her board may have flouted procurement regulations when appointing a little-known company to source R15bn for the airline in 2015. That is why this economy will never grow, too much rent seeking deals, all in the name of BEE
Source: SundayTimesZA - 🏆 47. / 51 Read more »