The airline also said on Thursday that it had appointed Michael Kleyn as acting group treasurer. Cynthia Stimpel has been suspended as treasurer.
SAA said last week it had placed the deal with BnP on hold following legal threats by lobby group, the Organisation Undoing Tax Abuse (Outa), which also said the Financial Services Board (FSB) had revoked BnP Capital's operating licence shortly before its deal with SAA.
In addition to being appointed transaction adviser, BnP Capital had also been appointed to source funds for the airline to avoid it defaulting on debt. SAA had R7.2bn in loans maturing at the end of June from different lenders.
SAA said on Thursday that BnP Capital was appointed after a potential lender withdrew from the deal before an agreement had been signed following a "procurement process".
"SAA was faced with a predicament and had to consider on an urgent basis other alternatives to mitigate its risks associated with loans that were maturing within a month," the airline said in its statement.
It followed a process allowed for in the supply chain management policy and recognised by National Treasury, which allowed for a deviation from a tender process "and go on a confinement process", it said.
BnP Capital had originally been selected from seven bidders that had responded to SAA's request for proposal for a transaction adviser to help it restructure its debt.
Two companies were disqualified during the process, SAA said, "as they failed to meet the critical criteria, being the existence of a valid and current Financial Services Board issued licence".
Last week Business Day reported that SAA had suspended its Treasurer Cynthia Stimpel, who had objected to the airline's appointment of BnP Capital.
On 20 May, Stimpel sent an e-mail to SAA acting chief financial officer Phumeza Nhantsi saying the airline would be paying at least three times more than it needed to for BnP Capital's services. She had recommended an open tender process.
However, on Thursday SAA again denied that Stimpel's suspension was related to the deal. The airline said in its statement on Thursday that Stimpel's suspension remained as she had been suspended for "misconduct".
The airline said it had taken the decision to terminate the deal with BnP on Wednesday following submissions from BnP Capital to questions raised over its licence.
The airline said that on 7 July it had received correspondence from law firm Webber Wentzel, representing Outa, stating concern about a "range of issues" pertaining to BnP's appointment.
"The concerns were individually considered fully, including whether or not BnP Capital was in possession of a valid FSB licence as a financial service provider," SAA said.
It also said it had contacted BnP Capital the day after receiving correspondence from Webber Wentzel and "BnP Capital duly responded to SAA enquiries".
"On July 20 2016, after considering all relevant information received from BnP Capital, SAA management took a decision to terminate all BnP services to the airline as a prospective financial service provider in relation to SAA's initiative on debt consolidation. No payments had been made to BnP Capital," said SAA.
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