Gordhan to Denel board: Prove to us you’re not captured

Pravin Gordhan, in his new role as a member of Parliament’s portfolio committee on public enterprises, has now zeroed in on Denel’s board, demanding it prove to MPs that it was pursuing national interests and not those of the controversial Gupta family.

The leaders of the state-owned arms manufacturer made a presentation to the committee on Wednesday.

On Tuesday, Gordhan grilled the Eskom board, seeking answers for its re-appointment of Brian Molefe as its chief executive. At the heart of Gordhan’s searing indictment of the power utility’s board was the allegation that bosses at Eskom are in the process of “capturing” the parastatal for the “benefit of a few”. “Who instructed you to re-hire Molefe?” Gordhan asked of the board.

The former minister, who was axed in a midnight Cabinet reshuffle in March and is now an ordinary ANC MP, has the Asian joint venture between Denel and Gupta-linked VR Laser firmly in his crosshairs, according to reports by Fin24 and EWN.

“South Africans are worried that there is a common pattern in the capture process,” he said. “We’ve seen similar patterns here. Persuade us you had no choice at all to enter into this deal.”

The chairperson of Denel’s board, Daniel Mantsha, told the committee that the parastatal had not been captured.

Public Enterprises Minister Lynne Brown has barred Denel Asia from conducting business with the state until Denel has clearance from the treasury. The state arms manufacturer has approached the high court to obtain approval for the venture.

Mantsha believes the venture with Denel Asia will help the state-owned enterprise profit from the lucrative Asian-Pacific aerospace market.  

Gordhan referenced an affidavit filed by former treasury director-general Lungisa Fuzile — which states that Gupta-linked VR Laser South Africa may not have enough funds to pursue the deal with VR Laser Asia, which is owned by Gupta associate Salim Essa — to justify his apprehension.

“Many things may look like business decisions on the surface, but we need to find out what’s below the surface. You need to demonstrate you’re not serving the families mentioned by yourselves,” said Gordhan.

Keep the powerful accountable

Subscribe for R30/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Ofentse Mboweni
Ofentse Mboweni is communications officer for the Grow Great campaign. He has a keen interest in South African politics and history, is an avid reader and loves anything to do with good hip-hop music, literature and afrofuturism. Described as a "blerd" and postmodernist by some, he prefers to be called OJ.

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

A to Z guide on HIV: The top 10 things...

The HIV pandemic isn’t going anywhere until a cure is found. In the meantime, HIV clinicians say South Africa should protect its victories

PODCAST: How South Africa fits into the global economy, pt...

Michael Power chats to the M&G editor-in-chief and business journalists about South Africa and its place in the global economy

Zambian president’s first 100 days

Hakainde Hichilema came to power on a wave of optimism. Has he delivered?

WATCH: How safe are vaccinated people from the Omicron?

Leading vaccinologist, Professor Shabir Madhi explains how South Africa is lagging behind in vaccinations and how this could affect the newest variant
Advertising

press releases

Loading latest Press Releases…
×