Denel board snubs Scopa meeting

Denel chairperson Gloria Serobe . Picture: ANA Archive

Denel chairperson Gloria Serobe . Picture: ANA Archive

Published Jun 6, 2023

Share

Cape Town - The standing committee on public accounts (Scopa) postponed its meeting with state-owned enterprise Denel, after none of the board of directors made it to the meeting on Tuesday.

The absence of the board members was despite board chairperson Gloria Serobe undertaking to ensure that they would have representation at the meeting.

Denel was meant to brief the committee on its failure to table its audited 2021/22 annual report, on its liquidity crisis, as well as update the committee on irregular, fruitless and wasteful expenditure.

The Special Investigating Unit was to have briefed the MPs on the investigations it was conducting at the entity.

However, Scopa chairperson Mkhuleko Hlengwa said he had received a letter written to Public Enterprises Minister Pravin Gordhan from Serobe, indicating she was abroad but members would be present.

Deputy Minister Obed Bapela told Scopa that none of the board members could be found.

Bapela said Serobe had indicated that she would endeavour another board member to be present.

“When she tried to get other members, most were engaged and some are travelling abroad. We don’t have a board member present in this meeting.

“I know this is going to be a very difficult apology that we are presenting and we did even discuss as we were preparing for this meeting. I am presenting it as difficult as it is,” he said.

Hlengwa said the absence of the board members was unacceptable.

“The accounting authority of Denel is the board, not the executives. If the accounting authority is not here, who are we talking to?” he asked.

Hlengwa noted that Serobe had in her letter undertaken to ensure there was board representation at the meeting.

“It is concretely understood that the board must be here,” he said.

Parties across the political divide were in agreement that the meeting should not proceed without the board.

There was a concern that the board’s non-attendance led to wasteful expenditure and caused delays in accountability and oversight work of Scopa.

Hlengwa said it was standard procedure that when a board of an SOE was not present that they did not continue with the meeting.

“What is worrying you had an assurance board representation will be done but it did not happen.

“I find that to be dereliction of duty and undermining Parliament and therefore we are not to proceed,” he said.

Hlengwa said they would reconvene next Wednesday and that the board would have to explain at the next meeting as to why the cost incurred by the MPs, Department of Public Enterprises and Special Investigating Unit should not be borne by them personally.

Cape Times