Denel has not been found to have broken any laws in either South Africa or India, but the unfortunate perception has been created that the state arms manufacturer has a cloud hanging over it, says Denel CEO Shaun Liebenberg.
Liebenberg told MPs serving on the National Assembly public enterprises portfolio committee on Tuesday that the news about India — that it was probing allegations that the parastatal had paid bribes to win the bid to supply India with weapons, including R12,4-billion-worth of anti-material rifles — broke on the day he was appointed, in April this year.
The story took him by surprise, he added.
Officials at the highest level in South Africa and in India visited each other following the Indian decision to probe the contracts. Legal counsel was engaged “at the highest possible level” and Denel was committed from the beginning to a transparent investigation.
Denel has not been investigated by the Scorpions in South Africa and “neither [in] the Indian environment or the South Africa environment” has it been found that Denel contravened any laws.
However, he said the mere fact that Denel has been tainted with various accusations “is a difficult situation”, as nobody wants to do business with somebody who has a cloud hanging over his head. Denel, however, has not committed “any crime”, he emphasised.
India earlier this year cancelled contracts with Denel for the anti-material rifles and a multimillion-rand deal to supply red-phosphorous ammunition.
India probed allegations that Denel had violated contractual clauses by using “undue influence and agents or agency commissions” to win the deal.
The investigation followed allegations that Denel paid a British firm, Varas Associates, to influence the Indian government to buy the South African products. — I-Net Bridge