Johannesburg – Former board member of the South African Airways (SAA), Yakhe Kwinana, has appeared before the Johannesburg Specialised Commercial Crime Court on allegations of fraud involving R59 million.
The charges against the accused emanate from her alleged failure to disclose past contractual relationships with two entities, namely, PricewaterhouseCoopers (PwC) and Nkonki Incorporated that were awarded a tender worth R59 million as joint auditors by SAA for auditing services for the 2011/12 financial year.
The state alleges that Kwinana, in her capacity as the chairperson of the audit committee of SAA and a member of its accounting authority failed to comply fully with the fiduciary duties imposed on her by the provisions of section 50 of the Public Finance Management Act (PFMA).
The accused allegedly failed to disclose to either PwC, Nkonki, or the board of directors of SAA and the audit committee of SAA that Kwinana and Associates of which she was the sole director, had previous contractual relationships with PwC and Nkonki and thereby caused prejudice to the proper administration of the affairs of SAA.
Phindi Mjonondwane, National Prosecuting Authority Gauteng spokesperson explained that Kwinana’s failure to disclose was also prejudicial to the public who are entitled to procurements by organs of state that are fully compliant with the prescripts of the Constitution.
In terms of section 50(3) of the PFMA, a member of the accounting authority must disclose to the accounting authority any direct or indirect personal or private business interests that, that member or any spouse, partner, or close family member may have in any matter before the accounting authority; and withdraw from the proceedings of the accounting authority when that matter is considered, unless the accounting authority decides that the member’s direct or indirect interest in the matter is trivial or irrelevant to the matter under consideration.
Bail was set at R20 000, following an unopposed bail hearing.
The case will be back in court on 29 January 2025 for disclosure of the contents of the docket to the accused.
