Ex-SAA board member Yakhe ‘Fat Cakes’ Kwinana fined R6.1m, booted as chartered accountant member

Former South African Airways (SAA) board member Yakhe Kwinana has been fined R6.1 million and been kicked out as a member of the SA Institute of Chartered Accountants (Saica).

The ruling was released by accountancy regulator Saica on Thursday, and comes after a disciplinary hearing was held against Kwinana.

Saica’s disciplinary committee said Kwinana “was not a fit and proper individual to be a member of the profession”.

‘Fat cake’ testimony

Kwinana, who is also a former chair of SAA Technical, made headlines in November 2020 after she used a “fat cake” analogy at the Zondo commission to explain why she cancelled a R85 million tender and gave it to another company without issuing a tender.

The tender was initially awarded to LSG Sky Chefs, but the board cancelled it and gave it to another company, Air Chefs.

“When I make this example of this LSG Sky Chefs… if my daughter is selling fat cakes here at home why would I buy them next door and not tell her that I don’t like your fat cakes?” she said during her testimony.

ALSO READ: Kwinana welcomes investigations amid damning state capture report findings

Kwinana served as a SAA board member from 2009 to 2016.

Saica disciplinary hearing

The Saica disciplinary hearing came after Chief Justice Raymond Zondo’s state capture report questioned whether Kwinana had the “requisite knowledge and appreciation of her obligations” to practise as a chartered accountant.

“The commission believes the answers she gave to certain questions during her evidence revealed either that she has no clue of some of the basic obligations that she should know as a chartered accountant,” Zondo said.

Zondo’s report also said Kwinana probably received “corrupt payments” while she was chair of SAAT and a board member of SAA.

ALSO READ: Saica investigating former SAA board member Yakhe ‘Fat Cakes’ Kwinana

The Saica disciplinary hearing found Kwinana guilty of 13 of the 14 charges against her. The other charge was withdrawn.

She was fined R500 000 for 11 of the charges. A R300 000 fine was issued for the other two charges.

The ruling means Kwinana can no longer practise as a chartered accountant. She was also ordered to pay all Saica’s legal costs, excluding security services. 

“Saica deals with all allegations without fear or favour. Saica members who fail to uphold the highest ethical and professional standards compromise public and private sector institutions and the South African economy,” said the accountancy regulator’s CEO Freeman Nomvalo.