I was used for people to enrich themselves, claims former SAA CFO
Former South African Airways (SAA) CFO Phumeza Nhantsi says she believes she was used as a vehicle for individuals in and outside the company to enrich themselves.
Nhantsi appeared before the commission of inquiry into state capture on Tuesday.
She was appointed as the acting CFO of SAA in 2015 at the same time the company was looking for an R15 billion loan.
Nhantsi says she was approached by the Free State Development Corporation (FDC), which submitted an unsolicited offer to finance the loan. However, the FDC did not have the mandate to fund state-owned entities.
She supported the submission, despite the fact that normal procedure was not followed.
"The FDC CFO mentioned that the chairperson of their board was the sister of Ace Magashule, at the time I couldn't link anything as I was not clued up with politics and now looking back and knowing what I know, I see that in a way I was used as a vehicle for people to enrich themselves," said Nhantsi.
She said at the time she thought it was the correct decision for SAA to take up FDC on its offer since the calculations led her to conclude that SAA would benefit by some R700 million.
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The FDC was not awarded the contract.
Nhantsi also told the commission at the time of her appointment the SAA board was making unilateral decisions that were implemented by management.
She three days after her appointment, board chairperson Dudu Myeni introduced her to Masotsha Mngadi, who, she said would be her advisor. Nhantsi later found out that Mngadi was not on the company's payroll and was employed by Nedbank.
When SAA irregularly appointed BNP Capital as its Transactional advisor in the R15 billion loan negotiations, Nhantsi said she has introduced again to Mngadi, this time as BNP Capital's representative.
Advocate Kate Hofmeyr: "Do you accept that his appearance in BNP Capital despite being employed at Nedbank which was a competitor bidder would be irregular?”
Nhantsi: "I accept that chairperson."
Hofmeyr: "But you did not probe it further with him at the time despite knowing of this conflict in him occupying both positions?"
Nhantsi: "I did not chair. I asked him, and he laughed it off, the decent thing I should have done was ask the chairperson of the board."
Nhantsi admitted to failing to raise the concern again when SAA expanded BNP Capital's mandate to include sourcing the R15 billion funding.
The firm was set to benefit R325 million if the contract went ahead.