Photo by: Creamer Media
State-owned arms maker Denel is in the process of closing down the controversial Denel Asia joint venture, the company informed the Portfolio Committee on Public Enterprises on Wednesday.
The committee was briefed by a delegation led by Denel chairperson Monhla Hlahla on the current state of forensic investigations at Denel.
Committee chairperson Lungi Mnganga-Gcabashe previously questioned why Denel Asia was established, but was informed by the previous board that Denel Asia had been set up as a legitimate company to expand the defence company’s footprint in the Asian market.
It was then suggested by the committee that there was no need to expand, as Denel had an existing footprint in Asia and that Denel Asia had been set up as a catalyst for State capture.
The committee said outcomes of the forensic investigation should lead to consequence management, not only for the staff implicated, but also the politicians who have been found to be involved in alleged looting at the company.
Meanwhile, at the briefing, Hlahla denied that Denel had loan agreements with Qatar and Saudi Arabia, and that Denel was up for sale.
Reuters reported last month that Saudi Arabia had made a $1-billion offer to enter into a partnership with Denel that would include the acquisition of an interest in Denel Rheinmetall Munitions – a joint venture between Denel and German company Rheinmetall.