State owned airline SAA has reportedly paid R4.5 billion to overseas contractors littered with procurement irregularities.<\/p>\n
According to City Press, two forensic reports show how fleet maintenance company, SAA Technical (SAAT) extended contracts several times without going to tender.<\/p>\n
Both reports were submitted in May and will be processed by the new SAA board, the paper said.<\/p>\n
It comes after SAA received a R2.3 billion bailout to settle a Standard Chartered Bank loan only weeks ago.<\/p>\n
The reports which were drawn up by Open Water Advanced Risk Solutions, found that SAA and its technical division extended a tyre contract with BAE many times, over 15 years, without a public tender.<\/p>\n
Among other irregularities, BAE won a contract for the supply of Boeing and Aircraft tyres in 2014, yet no contract was signed, with the companies operating through a memorandum of understanding, City Press said.<\/p>\n
A second report showed that a five-year components and logistics contract awarded to Air France in 2013, was extended without a tender process, netting the company R2.5 billion by 2016.<\/p>\n
SAAT then advertised for a new R1.3 billion, five-year tender, with the Bid Adjudication Committee recommending that it be awarded to Air France for the Airbus components and Israel Aerospace Industries for the Boeing fleet.<\/p>\n
City Press reported that the committee\u2019s recommendation \u201cdid not include any amounts and was presented in a manner that deems Air France to be the service provider providing the lowest cost to SAAT, notwithstanding the fact that they were approximately R200m more expensive than Lufthansa\u201d.<\/p>\n
Open Water investigators also reported that a Black Economic Empowerment company was awarded a contract in 2015 despite not having expertise nor experience in the aviation sector.<\/p>\n
“The company\u2019s premises were also found to be a residential area in Sandton, City Press said.<\/p>\n
Air France did not respond to requests for comment.<\/p>\n
SAA spokesperson Tlali Tlali said: “The board would like to assure the public that it does not condone, nor will it cover up, allegations of criminality at SAA.<\/p>\n
“However, any action the board must take against anyone accused of impropriety must be factual and be legally sustainable.\u201d<\/p>\n
Investigations, he said, were previously commissioned by SAA to look into financial losses incurred by the company.<\/p>\n
\u201cThe board has looked into those reports and determined that, as things stand, they are incomplete.\u201d<\/p>\n
The full report can be found in the latest Sunday edition of the the City Press.<\/p>\n