Johannesburg - The South African Communist Party has called for a thorough investigation into the Gupta-linked arms deal by arms firm Denel following confirmation by Finance Minister Pravin Gordhan that the transaction was not approved by the Treasury as required.
Gordhan said on Wednesday that the deal should be approved by both him and Public Enterprises Minister Lynne Brown, which was yet to be done.
According to the SACP spokesman Alex Mashilo, Gordhan’s confirmation “calls for decisive action – preceded by cancellation of the deal”.
Read: Gordhan lashes Denel over Gupta-linked firm
“What is even worrying about the Denel-Gupta linked VR Laser Asia joint venture is that it followed shortly after the 24 July 2015 appointment of new non-executive directors at Denel, one of whom happens to be the younger brother of North West Premier, Supra Mahumapelo.
Read: DA wants Mahumapelo to explain Gupta ties
“Two months later, the board suspended the Chief Executive Officer Riaz Saloojee, Chief Financial Officer Fikile Mhlontlo and Group Secretary Elizabeth Africa.
“The investigation must establish whether there is a connection between the new joint venture that was created between Denel and the Gupta-linked VR Laser Asia which reportedly is relatively new and does not have any track record in arms manufacturing,” said Mashilo.
The party said all deals involving the Gupta family should be scrutinised, and slammed politicians who were defending the controversial family.
“All family ties traceable or linked with the wheeling and dealing between Gupta-linked companies, state owned corporations, decisions made in the state or in state owned corporations and related appointments must be scrutinised.
“The defence of the actions of the Guptas by some politicians using their positions of leadership may not be innocent or detached from the messy web,” said Mashilo.
Political Bureau
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