Denel grilled over Gupta deal

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Published May 24, 2017

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Cape Town - State arms manufacturer Denel has been

grilled by Parliament on Wednesday over its push for a deal with a Gupta-linked

company VR Laser.

Members of Parliament's Portfolio Committee on

Public Enterprises questioned Denel’s decision to push for the deal despite the

objection of the National Treasury.

Former Minister of Finance Pravin Gordhan objected to the

deal when he was in-charge of Treasury in 2016.

His successor, Malusi Gigaba, has also blocked the deal,

while ex-Director General in the National Treasury Lungisa Fuzile said in the

court papers the company was insolvent.

Gordhan, sitting in the committee on Wednesday,

questioned the transaction and whether it was to the benefit of South Africa or

a selected few.

Denel chairman Daniel Mantsha denied that the arms

manufacturer has been captured, and said everything done by Denel was above

board.

He said it had done due diligence and everything was in

line with the laws of the land.

Mantsha said it was public perception that Denel has been

captured.

Read also:  Denel to go ahead with VR Laser venture

He said the company was in the business of getting

business opportunities across the world.

But MPs from across party lines were not happy, and

said they still wanted answers from Denel.

They said it was easy for Denel to sing its own praises

in the absence of the National Treasury.

Denel has been locked in a legal fight with the National

Treasury since 2016, when Gordhan blocked the deal.

Gigaba has done the same and called for Denel to scrap

it. 

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