A COMPANY that South African Airways (SAA) chairwoman Dudu Myeni wanted included in the airline’s transaction with Airbus has denied involvement, raising yet more questions about the controversial deal.
In a letter to the board, Ms Myeni names Quartile Capital, but on Monday CE and founder of Quartile, Modise Motloba said he had no dealings with SAA or Ms Myeni.
In a letter written at the end of last month, Ms Myeni motivated to the board why Quartile should be appointed as an adviser on the Airbus transaction to swap 10 A320s for five A330s and that tender procedures be waived due to the urgency of the matter.
Ms Myeni told board members that a meeting to discuss the matter was urgent because there had been disagreement over the Airbus swap deal which, despite having been agreed to by the board on April 21, was now "not fully understood or not fully supported" by the board.
"There has been a development in which a South African third party has indicated that it wishes to make a funding proposal of (sic) the swap transaction," the letter continued.
It stated that the new consortium was made up of private and state-owned financial institutions, which were not named, and that the board needed "to determine whether this might be in the best interests of SAA, and how best we can reduce costs with the … proposal".
While Quartile was named as the transaction adviser, it was clear from her letter that the firm — or a company purporting to be Quartile — had also made a funding proposal.
Ms Myeni said Quartile Capital’s "experience is unparallelled and recommended highly for such transactions".
"I have considered them as they are perceived to be independent and credible. They have indicated they are willing and able to advise the board notwithstanding the short notice," she said, encouraging board members to make their own recommendations of potential candidates.
She suggested that private financial institutions present proposals to the board and "that the board deliberates on all representations made (including Quartile Capital) and determine a final resolution of the swap transaction’’.
When asked on Monday what the scope of the relationship with SAA was, Mr Motloba said his company had no formal or informal relationship with SAA.
"No, (there is no relationship), we don’t have mandate, we don’t have anything," he said, sounding ruffled after Ms Myeni’s letter was read to him.
In an e-mailed response to Ms Myeni and the rest of the SAA board, former chief financial officer Wolf Meyer said the transaction already had three advisers, and he did not see what value a fourth could bring.
The advisers included Aerogestion and Avico, while the Treasury had relied on Deloitte for its advice on the Airbus swap.
"I have reviewed the New Airbus A320/A330 swap transaction proposal from Quartile Capital. I initially wanted to comment on it, but as I progressed reading it, I realised, with respect to Mr Motloba, that he displayed very little aptitude for grasping the current transaction as well as SAA’s hedging policies," said Mr Meyer.
Mr Motloba was adamant that he had done no work for SAA. "I have not been formally approached in this regard, I have never been approached," he said.
Mr Meyer said in his e-mail he had found after a board meeting with Airbus — which Ms Myeni said she could not attend — a subsequent meeting was held between the "transaction adviser" and some board members with Airbus executive Hadi Akoum.
Asked if he had met any Airbus officials Mr Motloba said: "I have had no discussions with them."
He said he had not done any work for SAA since 2004 when he was working for Africa Vukani, and "my company did the analysis of the hedge book then".
He suggested that SAA had gotten hold of his details on the internet and relied on that to suggest his company.
Asked how it was that his company and a strategy attributed to him was being discussed by SAA board members and executives, Mr Motloba said: "I would love to know." He said he did know Ms Myeni.
"I know her, I have met her — I come from business associations (and) I have met her, she was assisting the president at the time — at some point she did some work for the president."
Asked about the proposal Mr Meyer referred to, Mr Motloba appeared confused. "I don’t know, I may have to ask my guys, I have not authorised anything like that. I don’t know, I have to find out," he said.
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