Yakhe Kwinana, a former member of the SAA board, risked the airline’s proper governance and management by failing to disclose previous contract agreements.
The 60-year-old Kwinana turned herself in to the Germiston-based serious corruption investigation team on suspicion of violating the Public Finance Management Act.
She has been charged with fraud. This was revealed at the Palm Ridge magistrate’s court on Tuesday following her arrest.
Kwinana is accused of failing to inform the public entity’s board of directors that her company had agreements with audit firms PricewaterhouseCoopers (PwC) and Nkonki in the past.
Nkonki previously gave SAA a series of clean audits at the time when graft at the state-owned company was on the rise.
According to reports, in August 2011, the board of directors of the public entity convened and discussed the award of the contract to external auditors who had tendered for a contract to render the services of auditing.
Bids for contract
PwC and Nkonki had submitted bids for the contract, and the board of directors recommended that the two firms be awarded the contract.
Kwinana, who was a member of the board that deliberated and recommended appointments of the two firms, voted in favour of the resolution of the board.
Since she was the chairperson of the public entity’s audit committee and a non-executive member at the time, the suspect knew that PwC and Nkonki had submitted bids for the services
Hawks spokesperson Colonel Katlego Mogale said Kwinana’s failure to disclose past contractual relationships with the companies caused prejudice to the proper administration of the affairs of the public entity.
“The public entity made payments amounting to approximately R59-million because of the conclusion of a contract, which would not have been concluded if all the material facts relating to the relationship between the accused and the two companies were known to the board of directors of the public entity,” said Mogale.
She was released on R20 000 bail for the alleged irregular awarding of contracts.
