Media Conference & Presentation

UNLAWFUL LEADERSHIP
CONDUCT AT SAA
8 July 2016

Request for information :

Sunday Times 7/2/2016

Draft motivation to BAC

includes sourcing of funds

RFP excludes sourcing of funds

BnP bid includes sourcing of

funds although not requested

Hourly rates of BnP

Board approval on 21 April 2016

Motivation for increasing scope

Unsigned motivation R 300m

Signed motivation R225m excl VAT-

Board approval 24 May 2016

Signed on the 27th of May

2016

Hypothetical quotes from

banks

Qualifying criteria

Website and FSB license

FSB license suspended

appears to be 23/6/2016

Is the motivation plausible?

No, the board were totally aware of the maturity of each
of the loans of SAA, this is prevalent in the submissions
of the financial risk sub-committees (which meet
monthly), EXCO (meet monthly), audit and risk com
(quarterly) and board meet quarterly.
Board approved the borrowing plan in February already.
ICFO was party to of the borrowing plan.
The draft RFP of March 4 included the sourcing of funds.
Sourcing of funds for what? To settle debt.

continued
Sourcing of funds was not included in the
Transaction Advisors scope of work as SAA believed
that the funds could successfully be sourced without
the Transaction Advisors assistance. The outcome of
SAAs efforts to secure the funding without the
assistance of the Transaction Advisor in the market
have proved otherwise
This is false, there was a previous attempt by the
board to source funds, but bids were rejected for lack
of information and as a result of the board not being
satisfied with the sourcing of funds from various
sources rather than a single source.

continued
The industry norm is that Transaction Advisors
charge a success fee ranging from two (2) to three
(3) percent of the funds sourced and SAA negotiated
the success fee with the Transaction Advisor. The
two parties settled for a success fee of one point five
(1.5) percent should BnP Capital (Pty) Ltd be tasked
to urgently source the funds.
SAA has previously sourced R 5 billion at a success
fee of R13 million ( 0.26%).
The hypothetical quotes received indicated cheaper
rates at between R170m and R214 m from BnP
Capital on the R15 billion funds to be sourced.

We have questions
Who is Inline Trading 10?
Why did a company with a history of white
directors get a black director on the 5 th of
February 2016 and enter the bid on the 7 th
of February, the day of the opening of the
request for information.

Inline trading shop front

More questions
Is Mr. Mahlangu advising
himself, as he is a director of
South Point Management
Services?

More Questions
Why were bidders only given a week to reply to
the RFI, when the policy clearly states two
weeks?
Why were the bidders also only given one week
to reply to the RFP when the policy clearly states
two weeks?
How is it possible that the BnP bid was lost by
SAA, submitted past the closing date their bid is
lower than the other lowest bidder and almost
exactly the estimated contract amount ?

THANK
YOU