LIVE FEED: State Capture Inquiry - November 10, 2020
Johannesburg – The Zondo commission will continue to hear Denel-related evidence on Tuesday.
The Denel Group’s former chief financial officer Fikile Mhlontlo is expected to take the stand.
On Monday the commission heard that the financial woes at the state-owned arms manufacturer could pose a serious threat to the country's security as it has allegedly failed to complete the manufacturing of key military equipment on time.
The construction of some armoured vehicles has been delayed by more than 11 years and no action has been taken against officials for dereliction of duty.
The commission heard the evidence from various arms experts including that of Sipho Mkhwanazi – acting Group chief executive of Armscor.
Mkhwanazi told the Commission that contracts for the Hoefyster project which was due to be completed in 2012, was likely to be delivered in 2023 adding the delays were due to the precarious financial state which Denel currently finds itself in.
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“Denel financial problems are getting worse. They are unable to pay the salaries of their employees. They need R130 million to pay for the salaries of their workers. They also owe suppliers for more than R700 million. It is likely that the Hoefyster project would collapse because Denel is unable to pay their suppliers,” Mkhwanazi said.
According to him, Denel needs a bailout of R1.8 billion from the government to resolve their internal problems including its obligations to their suppliers.
Mkhwanazi further admitted that there had been a huge delay by Denel in providing the delivery of armoured vehicles on time.