State capture: we did not have time to vet Inline Trading, says BNP Capital boss
The state capture inquiry on Thursday heard testimony from BNP Capital's Daniel Mahlangu, who claimed that Inline Trading's Masotsha Mngadi approached his company to bid for the SA Airways (SAA) tender for advisory services.
Mahlangu alleged that Mngadi had knowledge of confidential SAA information, which he shared with BNP Capital while applying for the SAA tender.
Here is a summary of his testimony in five quotes.
"BNP Capital is an independent advisory firm which was started in 2010 by three individuals and we all came from different financial institutions. We came from Deloitte and Kagiso investments. When we started the company, our main objective was to form a private equity fund."
Meeting with Masotsha Mngadi
"When we met with Mngadi, he mentioned an opportunity that was available at SAA. Before the meeting, he had sent me an RFI, which I asked be looked at, so we try as much as we could to comply."
"It is the nature of our business that if someone comes to you and says I am involved with a particular client, and they give you an overview of that client and the deeper understanding of the issues, we focus on what stands to be achieved at that point in time."
This was in response to a question as to whether Mahlangu had inquired how Mngadi gained access to confidential SAA information, such as the rate at which the banks were loaning the company money.
Mngadi's reason for approaching BNP
Mahlangu told the commission that Mngadi approached his company to bid for the SAA tender for advisory services because it had the necessary expertise.
"He said he was looking for a credible advisory firm that had massive experience in the investment space and a track record ... , expertise and execution capabilities."
Why BNP Capital did not vet Inline trading's financials
"As far as this particular bid was concerned, we had the bare minimum at our disposal. As far as the due diligence on individuals and companies, we did not have time, we had a few days."