The former chairperson of SAA Technical (SAAT) and a one-time member of the South African Airways (SAA) board of directors, Yakhe Kwinana, has been released on R20 000 bail following her appearance in the Palm Ridge Specialised Commercial Crimes Court on Tuesday.
Kwinana’s case, which has garnered considerable attention, revolves around allegations of failing to disclose “previous contractual relationships” with two prominent audit firms: PricewaterhouseCoopers (PwC) and Nkonki Incorporated.
The firms in question were awarded a R59 million auditing contract for services spanning from 2012 to 2016, a deal now scrutinised for potential misconduct.
The accused insists that the fraud allegations against her are “completely incorrect”.
During her court appearance, Kwinana requested a deferment of proceedings to January 29, 2025, citing the need for adequate time to consult with her legal representatives to prepare her defence.
In an affidavit filed in support of her bail application, she expressed concern that she had not yet had a proper opportunity to review all necessary documentation, specifically the case docket.
This case is set against a backdrop of Kwinana’s controversial testimony at the state capture commission, where she famously used a “fat cake” analogy to rationalise the decision to cancel an R85 million tender with LSG Sky Chefs, transferring the contract to Air Chefs without going through a tender process.
At the time, Kwinana asserted that such a choice was among the best decisions she made during her tenure at the airline, illustrating her argument with a familial metaphor.
However, the allegations against her are serious.
According to Phindi Mjonondwane, spokesperson for the National Prosecuting Authority (NPA), Kwinana’s actions demonstrate a failure to observe critical protocol when awarding contracts linked to significant financial sums.
“The charges emanate from her failure to disclose past contractual relationships with two entities, namely, PricewaterhouseCoopers (PwC) and Nkonki Incorporated,” Mjonondwane explained.
“They were awarded a tender worth R59 million as joint auditors by the SAA for auditing services for the 2011/12 financial year.”
As chairperson of the audit committee of SAA and a member of its accounting authority, Kwinana allegedly neglected her fiduciary duties as set out in Section 50 of the Public Finance Management Act (PFMA), placing her under the critical gaze of the law.
The Star