FDC loan to SAA would have benefited certain people: Nhantsi

Former South African Airways (SAA) Chief Financial Officer, Phumeza Nhantsi, has told the Commission of Inquiry into State Capture she still does not support a decision taken by the SAA Board in 2015 that a consolidation loan of R15 billion is obtained from the Free State Development Corporation (FDC).

Nhantsi says looking back, the decision was not in the best interest of SAA. The FDC did not have the mandate to fund state-owned entities and national projects.

The commission heard that SAA chair Dudu Myeni and her Board ordered SAA to appoint FDC to provide the R15 billion funds.

Nhantsi told the commission she believes the deal would have benefited certain people.

She says this was stopped by national Treasury.

“If the company continued with the transaction at the time the company was going to save on interest because the company was paying interest of 1.2 billion per year. But looking in detail now in the inquiry after the letter I received from FDC and analyzing it in detail, it looks like there were previous discussions that were done. It looks like there was a bigger scheme and there were discussions before the discussion and perhaps there are people who stood to benefit from the transaction – using me to conclude that transaction.”

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