Not good enough SAA

OUTA – Organisation Undoing Tax Abuse

The Organisation Undoing Tax Abuse (OUTA) takes note of the media reports that South African Airways has put the BnP Capital deal on hold. This comes after SAA was placed on extended terms by OUTA’s lawyers where they have until today – 18 July 2016 – to provide an undertaking not to continue with the BnP arrangement, failing which legal action will ensue.

OUTA requires the deal to be cancelled, not to be put on ice. Furthermore, we have requested National Treasury to put BnP Capital on their ‘restricted suppliers’ list for failing to disclose the suspension of their FSB license, which will bar all government institutions from doing business with BnP Capital.

“Our urgent application to interdict the contract is still ready to be launched if need be. SAA cannot simply put the deal ‘on ice’ as we maintain their appointment is completely unlawful, even if BnP manage get the suspension of their FSB licence lifted,” said Ivan Herselman, OUTA director of legal affairs. “Therefore, we still require an undertaking in writing from SAA or their lawyers that they will not proceed with the transaction at all.”

In addition to OUTA’s request for National Treasury to place BnP Capital on its ‘restricted suppliers’ database, OUTA will also request the FSB to revoke their license for continuing to attempt to transact with SAA, after their license had been suspended.