Denel
Ex-Denel CEO denies he instructed executives to work with Gupta associate Essa
Riaz Saloojee on Thursday said he did not question the approval of the VR Laser contract even though the Guptas were already controversial.
Last month, the state capture commission heard evidence from former procurement executive Celia Malahlela how the state-owned arms manufacturer was looted.
The Zondo Commission is hearing Denel related testimony from former chief financial officer of Denel Land Systems, Pieter Knoetze as well as Sipho Mkwanazi and Mr Fikile Mhlontlo.
Mlambo has testified at the state capture commission about the company that other officials raised alarm about when it was awarded a 10-year contract beyond the maximum three years that Denel had set as policy.
Celia Malahlela read an email at the state capture commission on Tuesday, which she wrote to Denel Land Systems CEO Stephan Burger, who she said ignored her advice to follow proper procedures to award a 10-year contract to Gupta-owned VR Laser.
The department has briefed Parliament on the performance of SOEs like Transnet, Denel, South African Airways (SAA) and Eskom.
National Treasury told MPs that the SABC had asked for R4.9 billion in financial support, the Post Office (Sapo) needed R1.5 billion, and the Airports Company of South Africa (Acsa) wanted a three-year loan guarantee of R3.5 billion.
It also revealed the Post Office had asked for R4.9 billion to help it through the COVID-19 pandemic.
Denel has struggled to pay salaries this year amid a liquidity crisis aggravated by the coronavirus crisis.
Denel, which makes military equipment for South Africa’s armed forces and clients around the world, is one of several troubled state-owned companies in the country that have been kept afloat by government bailouts in recent years.
The Department of Public Enterprises said in a presentation to Parliament that Denel’s latest annual loss was caused by a significant decline in revenue.
Sadik takes up the reigns at a time when the state arms company is in the throes of a liquidity crisis and has failed to pay workers their salaries for three months now.
The state-owned entity requested an extension until Friday after failing to adhere to a court order to settle what it owes workers last week.
The unions are preparing to file contempt of court papers after the state arms manufacturer missed a deadline to pay by last Friday.
The state-owned company, which makes equipment ranging from armoured vehicles to missiles, has struggled to pay staff salaries due to a liquidity crisis aggravated by the COVID-19 pandemic.
The Labour Court on Tuesday ordered state defence firm Denel to pay workers outstanding salaries for May, June and July by no later than Friday, 7 August, a copy of the court judgment showed.
The union is seeking an interdict from the Labour Court that will force the cash-strapped state-owned entity to honour all outstanding contractual and statutory commitments to employees.
Denel, which makes equipment ranging from armoured vehicles to attack helicopters and missiles, has struggled to pay employee salaries amid a liquidity crisis aggravated by the COVID-19 pandemic.
One of several struggling state firms, Denel launched a recovery plan in 2018 but the COVID-19 pandemic dealt a blow to the company, which makes equipment ranging from armoured vehicles to attack helicopters and missiles.