SIU wants to pursue legal actions abroad to return Denel’s IP on missiles
It told Parliament’s Standing Committee on Public Accounts that it believes former officials colluded with a Dubai-based company that it formed a joint venture in 2012 and then later jumped ship to work for the company.
Picture: X/DenelSOC
CAPE TOWN - The Special Investigating Unit (SIU) wants to pursue legal action abroad to regain Denel’s intellectual property (IP) on missiles.
It told Parliament’s Standing Committee on Public Accounts (SCOPA) that it believes former officials colluded with a Dubai-based company that it formed a joint venture in 2012 it then later jumped ship to work for the company.
The SIU estimates the value of the losses at R328 million and a further R1.5 billion in royalties.
It said criminal action is being considered against seven individuals for colluding with Tawazun – Dubai’s defence acquisition company – to sign over the IP on missile development.
One official linked to the matter was dismissed following a disciplinary process.
ActionSA’s Alan Beesley said that given the extent of the rot at the arms manufacturer, R9 billion in bailouts over the years have been a waste.
“The stealing of the IP is a massive story, and it reads like a James Bond novel in a way, and it’s going to be very difficult to get it back.”
SIU head Andy Mothibi said getting the IP back will be tricky, and the SIU will have to make use of the government’s mutual legal assistance agreement with the United Arab Emirates (UAE).
“This will be a test case. We also want to explore whether there are avenues from a legal perspective where we can institute proceedings in that jurisdiction.”
Mothibi is not ruling out action being taken against Denel’s former board for failing in their fiduciary duties.