Denel CEO and finance chief on special leave
PROFITABLE - OCTOBER 2014
ANC WANTS TO SELL - MARCH 2015
LINKED TO GUPTAS - AUGUST 2014
ROOIVALK POPULAR - APRIL 2014
THE BADGER - ??
IF PARTS OF DENEL ARE SOLD ...WHO IS GETTING IT - GUPTAS?? DUDU ZUMA???
DENEL, Cape Town – State-owned defence manufacturer Denel on Wednesday placed three senior executives on special leave pending an investigation.Fin24 received a tip-off on Friday that the board placed CEO Riaz Saloojee, chief financial officer Fikile Mhlontlo and group company secretary Elizabeth Africa on special leave after a board meeting on Wednesday evening.
ANC WANTS TO SELL - MARCH 2015
LINKED TO GUPTAS - AUGUST 2014
ROOIVALK POPULAR - APRIL 2014
THE BADGER - ??
IF PARTS OF DENEL ARE SOLD ...WHO IS GETTING IT - GUPTAS?? DUDU ZUMA???
DENEL, Cape Town – State-owned defence manufacturer Denel on Wednesday placed three senior executives on special leave pending an investigation.Fin24 received a tip-off on Friday that the board placed CEO Riaz Saloojee, chief financial officer Fikile Mhlontlo and group company secretary Elizabeth Africa on special leave after a board meeting on Wednesday evening.
They will be on leave while the Denel board investigates a variety of issues, including recent business acquisitions made by the state-owned entity, sources said.Denel’s head of corporate communication Vuyelwa Qinga told Fin24 on Friday that she is aware of the situation.Public enterprises spokesperson Colin Cruywagen told Fin24 on Friday that “the board of Denel is dealing with the matter and Minister Brown is kept abreast of it”.Said Cruywagen: “Minister Brown will respond only after she has been formally informed by the board.”
The board was recently rotated by Brown, who appointed Daniel Mantsha as its chairperson from July 24.“I understand that they have been put on leave pending an investigation,” she said. “The board is accountable to the Minister (of Public Enterprises Lynne Brown) and would only report the details of such to her.
I am unfortunately unable to confirm your query.”When Brown announced the rotation on July 24, she said: “I encourage the new board to continue working closely with its executive team to solidify the company’s operationswith a strong emphasis on issues relating to transformation within the company, skills development and strategic partnerships in South Africa, the region, continental and global trade initiatives aimed at strengthening Denel’s order book.”Denel is the largest manufacturer of defence equipment in South Africa and operates in the military aerospace and landward defence environment.
The board was recently rotated by Brown, who appointed Daniel Mantsha as its chairperson from July 24.“I understand that they have been put on leave pending an investigation,” she said. “The board is accountable to the Minister (of Public Enterprises Lynne Brown) and would only report the details of such to her.
I am unfortunately unable to confirm your query.”When Brown announced the rotation on July 24, she said: “I encourage the new board to continue working closely with its executive team to solidify the company’s operationswith a strong emphasis on issues relating to transformation within the company, skills development and strategic partnerships in South Africa, the region, continental and global trade initiatives aimed at strengthening Denel’s order book.”Denel is the largest manufacturer of defence equipment in South Africa and operates in the military aerospace and landward defence environment.
- Here they are basically setting the company up for what we now know is a take over by the Gupta's!
THE credibility of Communications Minister Faith Muthambi’s legal adviser, Daniel Mantsha, has been called into question amid revelations that he was struck off the roll of attorneys in 2007.Reports emerged at the weekend that a High Court judgement had effectively struck Mr Mantsha off the roll for his unprofessional behaviour, dishonesty and misappropriation of funds. The reports surfaced after Public Enterprises Minister Lynne Brown on Friday announced his appointment as the new chairman of state arms manufacturer Denel.
"Taken cumulatively, the respondent’s (Mr Mantsha) conduct referred to in this judgement demonstrates that he is not a fit and proper person to continue to practise as an attorney, but that the only proper sanction is that of striking (him) from the roll," the judgement read.
But, according to the Department of Communications Mr Mantsha was readmitted in 2011.The Democratic Alliance (DA) said on Tuesday that the fact that Mr Mantsha was once struck off the roll was significant because it was on his advice that Ms Muthambi recently overturned Parliament’s legal opinion on the removal of South African Broadcasting Corporation (SABC) board members Ronnie Lubisi, Rachel Kalidass and Hope Zinde.
"Now that we know Mr Mantsha is a discredited attorney, it follows that his advice to the minister can be discredited too," said DA MP and communications spokesman Gavin Davis.
Mr Mantsha appeared before Parliament’s communications portfolio committee alongside Ms Muthambi in June and successfully convinced African National Congress (ANC) MPs to disregard a legal opinion they had received earlier this year that had found that the removal of the three SABC board members was unlawful. The authors of Parliament’s legal opinion stated that the valid removal of an SABC board member can only be executed by the president, as the appointing authority, and only after due enquiry in line with the provisions of the Broadcasting Act. "In addition, it turns out that one of the key tenets of Mr Mantsha’s argument has turned out to be false ... a few days after the committee meeting, one of the axed board members, Ronnie Lubisi, made a public statement declaring that he had in fact lodged a complaint to the chairperson of the portfolio committee, Joyce Moloi-Moropa.
“Mr Mantsha has in fact since been registered with the Law Society as a practicing attorney.--Whether or not he was put back on the roll, he is still dishonest and has misappropriated funds. The President has removed bad records from other people as well. I am afraid that a leopard doesn't change its spots. Once a thief always a thief. One finds it beyond belief that yet once again a crook has been appointed to the head of a vital resource. Unfortunately this one is profitable so there is more to take.
BACK TO....
MAY 2011
Cape Town - Denel Saab Aerostructures (DSA) remains a loss-making challenge to Denel, the department of public enterprises said in parliament on Tuesday.
Addressing a portfolio committee on public enterprises on the future of DSA, department director general Tshediso Matona said that while DSA’s losses were not as high now as in 2008/09, it was still in the red. Losses in March 2009 amounted to R444m, while in February 2011, losses stood at R259m.Saab, which had owned 20% of DSA since 2007, exited the business last month. Matona said that while talks to sell DSA to the Aerosud group were ongoing, the department was restructuring the business.The department’s acting deputy director general for investment and portfolio management, Anthony Kamungoma, said restructuring was taking place because it could not simply work on the basis that Aerosud would buy DSA.“We don’t want to be in a situation where we put all our eggs in one basket. If the deal doesn’t come to execution, then we’ll have to look at other methodologies to address the crisis.” - Well we now know what that meant. Sale of half of Denel.
Aerosud, a private sector enterprise, and the state-owned DSA produce significant and essential components for the Airbus Military A400M. This was as a result of South Africa joining the A400M programme as a partner and ordering eight of the military transporters in December 2004.The order was cancelled in 2009, raising questions about the future of local industrial participation in the A400M programme. Delays in the program and alleged cost overruns caused the government to cancel its order. Kamungoma said that these delays and cost overruns were also some of the reasons behind the crisis in which DSA found itself. Matona said the department would have a better idea on a way forward for DSA once the department of defence outlined its priorities, as these aircraft were for the defense force.“We have been asked by the joint defense committee to come back next week. The minister of defense will be tabling a strategic document... It would inform these (DSA’s) decisions. We need to know the defense department’s plans.”JUNE 2011
Cape Town - Denel's strategic direction needs to be revised to ensure its financial sustainability, Public Enterprises Minister Malusi Gigaba said on Wednesday. - Quite....
Although Denel had made some progress since the company embarked on a turnaround strategy in 2005, its solvency position continued to pose serious problems, he told the National Assembly during debate on his budget vote.
Cape Town - Denel's strategic direction needs to be revised to ensure its financial sustainability, Public Enterprises Minister Malusi Gigaba said on Wednesday. - Quite....
The major contributor to the entity's losses was Denel Saab Aerostructures (DSA). A framework for the resolution of DSA had been developed and was under way, he said. While the trading losses in the other entities had been brought down, the majority of Denel's business entities remained loss-making. "Clearly, the business is not sustainable in its current model." Shrinking defence budgets had resulted in the scaling back of certain procurement programmes, with lower economies of scale and increasing unit costs. "There is a need to re-think Denel's strategic direction going forward to ensure its financial sustainability. "Denel will be expected to accelerate its efforts towards skills development and transformation. The company must generate skills across the full spectrum, ranging from artisan level to engineers and high-tech technologists," he said.
A more robust turnaround plan that pursued financial recovery and stability through improvements in its operational and financial performance needed to be developed to secure the company's long-term viability.
A structured mechanism was required to effect the necessary alignment of Denel's business plan with the requirements of the defense department.
NOVEMBER 2011
Pretoria - State-owned arms company Denel has appointed Riaz Saloojee as new group CEO, Public Enterprises Minister Malusi Gigaba said on Wednesday. "Riaz has the right industry experience and skills to take Denel to the next level," Gigaba told reporters at Denel's head office in Irene, Pretoria.Saloojee takes over from Talib Sadik, whose stewardship saw Denel make a profit for the first time in over a decade. where?.....as they said in June it should be sold off because of all the losses.
Sadik's contract ends on December 31 2011. Saloojee has headed various defense organisations including Saab SA, Grintek Integrated Defense Systems, Metatek and Tau Aerospace. After completing matric, Saloojee joined the ANC's armed wing Umkhonto we Sizwe where he held various positions in Angola, Botswana, Zimbabwe and Zambia.
In 1994, he was appointed a colonel in the SA National Defense Force. Gigaba said Saloojee's mandate was to ensure Denel's sustainability and viability. Saloojee was also expected to win more international business for Denel as well as ensuring alignment between Denel and the defence department. "He needs to pull his charm to win... the confidence of the department of defence as the most critical customer that Denel should have," Gigaba said.
MARCH 2012
Johannesburg - The commission phase of the SA Army's new ground-based air defence system is starting, defence manufacturing group Denel said on Thursday.
"The SA Army will now take the equipment on inventory and initiate the commissioning phase of the programme," said Ralph Mills, CEO of Denel Integrated Systems Solutions (DISS), in a statement."This will take the system to operational readiness with support from Denel."DISS, a division of Denel, was established with the sole purpose of supporting the SA National Defence Force to acquire its ground-based air defence system.Mills said DISS had successfully completed the contractual hardware delivery requirements for the ground-based air defence system.This followed extensive evaluation and testing conducted last year at the Swartkop Air Field in Tshwane and at the Combat Training Centre at Lohatla, in the Northern Cape.Denel group CEO Riaz Saloojee said DISS was now ready to expand into other areas."The successful finalisation of this phase of the program had positioned DISS well for subsequent stages and the company is now in a position to expand into other domains," he said.
MAY 2012
Parliament - State weapons company Denel has not managed to secure any foreign orders for its Rooivalk helicopter, the parastatal's chairperson Zoli Kunene said on Tuesday.
He said at a public enterprises department media briefing that Denel had delivered 11 Rooivalk at a cost of R6bn to the SA Air Force. Six more Rooivalk would be delivered to the SAAF later this year."We don't have new any orders presently in (the) pipeline," he said."We have committed to the SAAF to continue maintaining the aircraft for the duration of their lifetime."Maintaining the attack helicopters would cost between R80m and R90m a year, he said."Denel Aviation will maintain these aircraft and has (the) capacity to maintain them."What happens, going forward... it is a situation we, with the air force, are reviewing."Public Enterprises Minister Malusi Gigaba said despite many of its problems in previous years, Denel was starting to break even.He said the company had secured orders in 2011/12 of more than R5bn to be delivered over the next five years.Denel Aerostructures was due for a R700m capitalisation, to allow it to prepare itself for the serial manufacturing phase of a programe to provide a component to Airbus's A400M military aircraft programe."We need to be proud of fact Denel Aerostructures has designed one of the most complex and critical parts of this aircraft," Gigaba said.
APRIL 2014
APRIL 2014
Cape Town - Government will push state-owned arms manufacturers Denel to increase production of the Rooivalk attack helicopter, Defence Minister Nosiviwe Mapisa-Nqakula said on Monday.
"We have to push them to do it and by doing so we have to assist them in whatever way to manufacture more because... everybody now wants a Rooivalk and they want a Rooivalk from South Africa," she told journalists in Cape Town.
"The Rooivalk Attack Helicopter was for the first time deployed by the UN... and played a pivotal role in the demise of the M23 rebel armed group in the eastern part of the DRC," the minister said.
The UN mission in the Democratic Republic of Congo, known as Monusco, has praised the effectiveness of the attack helicopter. Its success generated interest from elsewhere in the world, meaning the defence industry would have to increase manufacturing capacity.
"Our defence industry has no choice. Even if we did not have the capacity to do some of these things, the truth of the matter is wherever you go right now people are talking about the Rooivalk and people would want to order the Rooivalk... so our defence industry must be beefed up, must be assisted as we have been doing," she said.
Sales of the helicopter would boost the economy and the standing of the country's defence industry.
"I think it's good for the country. It's good for our economy," the minister said.
"It's good for the defence industry... because there's a lot of competition out there. It's good that they are beginning to identify South Africa as one of those countries that can play a very key role in supplying some of that equipment."
JULY 2014
Johannesburg - Denel Aerostructures was
awarded a multi-million rand deal to make parts for an international military
airbus, the company announced on Wednesday.
"The contract will cascade down to other companies in the aerospace and high tech sectors with some of the manufacturing processes being sub-contracted to Denel's Aerostructures' local supplier base.
"The contract is valued at more than R260m," the company said
in a statement. "The company will manufacture a combination of aluminium
rails and cross-tracks to be fitted into the cargo hold of each of the giant
aircraft, which are to be delivered to international clients over the next six
years".
The contract would benefit local
businesses within the industry.
Group CEO Riaz Saloojee saw it as an endorsement of the country's
engineering and manufacturing industry.
"It is a vote of confidence in the South African engineering and
high-tech manufacturing sectors. The tender was won through a bidding process
against international competitors," Saloojee said in a statement.
Production of the aircraft had already started and the components were
expected to be delivered to Germany by September.
The company had an existing partnership with Airbus Defence to
manufacture other parts of the plane.
The new contract strengthened the company's relationship with Airbus
Defence and Space, and signalled the experience in South African manufacturing
to the global aerospace sector.
AUGUST 2014
Johannesburg - Rajesh “Tony” Gupta and Duduzane Zuma stand to benefit from a multi year infantry combat vehicle contract with Denel worth billions, which will kick off within the next two years.
The two hold a 25.1% stake in VR Laser Services through Craysure Investments, a company wholly owned by Westdawn Investments, according to the Mail & Guardian.
Company records show Gupta and Zuma are directors in Westdawn, and both Westdawn and Craysure share a registered office in Midrand, Gauteng.
On its website, VR Laser, tucked in a cul de sac in the Boksburg industrial area on the East Rand, boasts that it is involved in “the supply of steel components for the Armaments Corporation of South Africa’s project Hoefyster, which involves a total of 264 infantry combat vehicles for the SA National Defence Force”.
This army contract, which Public Enterprises Minister Lynne Brown described as a “R10bn investment by government in Denel through the department of defence” during Denel’s AGM earlier this month, is called Project Hoefyster.
SO THE PLOT THICKENS.......... According to this the Guptas and Dudu own part of the Badger...
OCTOBER 2014
Cape Town - State-owned arms manufacturer Denel reported to MPs on the public enterprises committee on Wednesday that it has made a huge turnaround in the last eight years.
An example of its indigenous expertise is the Rooivalk attack helicopter, a wholly South African-designed product which was used by United Nations forces in the Congo, Saloojee said.Revenue improved by 17% to R4.58bn in the 2013 to 2014 financial year. Domestic revenue was R2.3bn, while export revenue rose 28% to R2.27bn, roughly half of total revenue.Operating profit of R224m represented a 91% improvement, according to chief finance officer Fikile Mhlontlo. Operating profit was R117m in 2013.
The CFO said financials were looking gloomy in the 2005 to 2006 financial year, when Denel was "seriously loss-making". It lost about R1.5bn in that year.
Successful turnaround strategy over the last four years it has turned a profit. This was achieved by a turnaround strategy which focused on revenue improvement, managing down costs and managing debt as well as the cash resources of the organisation, he said.
At a time when other companies and entities were being downgraded, Fitch had upgraded Denel, he reported.
Saloojee reported that Denel is developing a maritime capability, not to build ships but to supply items such as weapons systems.
He said the order book is currently R32bn - "the highest order cover in Denel's history".
Revenue was up to R4.58bn from R3.9bn in 2013. Gross profit was R899m, up from R826m in 2013. Net profit rose from R71m in 2013 to R194m in 2014.
Group CEO Riaz Saloojee told the multi-party committee that "right now we are a good company... we are performing well". He predicted that with the process of change, the company would be able to lay claim to being "a great organisation... reflective of the real spirit of our country".
This is not a company in trouble...does not need a bail out.
DECEMBER 2014
Cape Town - State-owned arms manufacturer Denel reported to MPs on the public enterprises committee on Wednesday that it has made a huge turnaround in the last eight years.
An example of its indigenous expertise is the Rooivalk attack helicopter, a wholly South African-designed product which was used by United Nations forces in the Congo, Saloojee said.Revenue improved by 17% to R4.58bn in the 2013 to 2014 financial year. Domestic revenue was R2.3bn, while export revenue rose 28% to R2.27bn, roughly half of total revenue.Operating profit of R224m represented a 91% improvement, according to chief finance officer Fikile Mhlontlo. Operating profit was R117m in 2013.
The CFO said financials were looking gloomy in the 2005 to 2006 financial year, when Denel was "seriously loss-making". It lost about R1.5bn in that year.
Successful turnaround strategy over the last four years it has turned a profit. This was achieved by a turnaround strategy which focused on revenue improvement, managing down costs and managing debt as well as the cash resources of the organisation, he said.
At a time when other companies and entities were being downgraded, Fitch had upgraded Denel, he reported.
Saloojee reported that Denel is developing a maritime capability, not to build ships but to supply items such as weapons systems.
He said the order book is currently R32bn - "the highest order cover in Denel's history".
Revenue was up to R4.58bn from R3.9bn in 2013. Gross profit was R899m, up from R826m in 2013. Net profit rose from R71m in 2013 to R194m in 2014.
Group CEO Riaz Saloojee told the multi-party committee that "right now we are a good company... we are performing well". He predicted that with the process of change, the company would be able to lay claim to being "a great organisation... reflective of the real spirit of our country".
This is not a company in trouble...does not need a bail out.
DECEMBER 2014
Cape Town - Denel has established a new maritime division, the state-owned arms manufacturer said on Monday.
"The establishment of the new Denel Integrated Systems and Maritime division [DISM] will strengthen the company's transition as a high-technology powerhouse and expand the range of products and services we now offer to the South African defence and security sectors," Denel group CEO Riaz Saloojee said.
"In addition, DISM will add to Denel's existing strengths in the landward and aerospace arenas, while at the same time opening up new markets for the company, enabling us to remain globally competitive.
Denel Aerostructures CEO Ismail Dockrat had been appointed as CEO of the DISM.
"We are opening up a new strategic area of business that will ensure Denel's activities cover the broader spectrum of defence and security markets and enable us to meet the needs of our primary client the SA National Defence Force more effectively," said Saloojee.
The DISM would be responsible for research and developing new local capability in, among others, surveillance, reconnaissance, cyber warfare and security.
FEBRUARY 2015
Cape Town – A secret Israeli spy cable has exposed an alleged cover up surrounding the theft of South African missile technology, according to cables in Al Jazeera’s possession.
On Monday the news organisation announced that it was in possession of leaked documents from State Security Agency (SSA) operatives showing how South Africa became vulnerable to foreign espionage after the end of apartheid.
The cables, obtained by Al Jazeera, span a period from 2006 to the end of 2014, and include detailed briefings and analyses written by the operatives.
Al Jazeera is set to start releasing the documents to the world on Monday evening.
In one of the document, obtained by Al Jazeera’s Investigative unit, it reveals how SA spies hid the fact that Israel had obtained stolen weapon plans.
According to one of the cables two men were caught red-handed trying to sell stolen missile blueprints, software and components from Denel.
Police launched a sting operation, posed as Russian buyers, and made their arrests outside Johannesburg in 2010.
Somehow, Israel’s Mossad had got hold of the anti-tank missile blueprints. It sparked a behind the scenes battle between the two nations spies.
South Africa wanted the blueprints back, which Israel agreed to provided that a citizen, Yitzhak Talia, would not be prosecuted, the cable shows.
He was not and it appears South Africa covered up Israel’s involvement and got its blueprints back.
Two men were tried without any mention of Israel’s secret role.
The SSA’s spokesperson Brian Dube told News24 the agency was aware of the leak of documents to Al Jazeera.
“Our policy that regulates the management of all classified documentation remains in place. That is all really that we can say.”
News24 had contacted the Israeli Ambassador for comment, but was told by his secretary that until he had seen the documents, he is in no position to comment.
https://youtu.be/eWs-n1g35Yw/
'There are no plans to sell portions of the state armaments company Denel, said Public Enterprises Minister Lynne Brown.
Replying to a question from Democratic Alliance MP Phumzile van Damme, Brown was asked whether there were plans to sell portions of Denel;
Van Damme asked Brown whether if the sale of portions were being discussed, which portions of each would be put up for sale and for what reasons, and when the sale would take place. She also asked whether potential buyers have been identified.
However, the minister said this has not been contemplated in any way.
- lies already compounded here in March 2015 when plans were already in place!!
Finance Minister Nhlanhla Nene noted in his February budget speech that a sale of “non-core” state assets would be used to raise money for the embattled power utility Eskom. But since then he has been mum on details.
He told a joint meeting of parliament’s finance committees that “no matter how much we would actually want to identify these non-core assets, it will not be prudent… to share the names when we are at a sensitive stage of the transaction, which is very close to being concluded”.
It remains a mystery which assets will be sold off as the Industrial Development Corporation, which holds a variety of assets in different sectors, has ruled out selling these assets.
-Reading this I wonder if a part of Denel is being sold off and I wonder if that part owns the Badger
I took the following from my other notes on the Monster of Defence. Don't know if the final Badger has been seen. It was first announced in 1997
In 2013 she approved the cost of 1.3 Billion for the "Badger" infantry vehicle. This was done before it was tabled in Parliament. While I have no problem in creating the jobs and even using Denel to manufacture them....I do have a problem with them costing around R 42 459 144 each. Do they take off into outer space for this amount of money? - This defence project was approved before the Defence review & I don't know if the total amount of the acquisition has been disclosed to parliament yet.- At a portfolio Committee meeting on 6/11/2013 The defence minister refused to take any questions on this project- Assuming the production cost of 264 "Badger" infantry combat vehicles was R8 400 000 000 in 2011 as set out in Denel's 2012 annual report;Has anyone seen the the Badger yet? or knows what the final cost will be???
APRIL 29TH 2015
Its most recent acquisition was revealed by DefenceWeb It said Denel had “acquired Land Systems South Africa (LSSA) from BAE Systems, with BAE yesterday announcing the sale of its 75% stake in LSSA.”
It said Denel took over the majority ownership stake for R641m in cash, although the complete acquisition cost Denel R855m, as it also bought the remaining 25% stake from BAE Systems’ partner DGD Technologies.
“Speaking to defenceWeb last week, Denel Group CEO Riaz Saloojee said that with the acquisition of LSSA, the whole landward mobility capability of the South African National Defence Force will once again be invested in the state. LSSA, Denel Land Systems, Mechem and LMT will be under one roof,”
(“We also recognise that the LSSA employees have made a significant contribution to BAE Systems over the last 10 years, and we believe that transitioning ownership to Denel will better position the LSSA business to achieve its full potential working with a strong South African company.”
The transaction includes sale by BAE Systems of its 75% interest in LSSA, as well as sale by DGD Technologies (2001) Proprietary Limited of its 25% stake in LSSA as LSSA is a joint venture between the two companies.
LSSA has comprised three business segments employing approximately 500 people. The LSSA business specialises in the design and manufacture of military tactical-wheeled vehicles, mechanical driveline products, precision-machined components and gears, fire directing systems, and remote weapon launching platforms, subsystems and products.
Riaz Saloojee, Chief Executive Officer of Denel said, “This proposed acquisition is in line with our company’s strategy to broaden our leading land system solutions through the addition of resources and assets, such as those of LSSA, which complement our capabilities in the design and integration of combat turrets, artillery and infantry systems and armoured vehicles.”LSSA already works with Denel, supplying commander and gunner sights for the Badger 8x8 infantry fighting vehicle being developed by Denel Land Systems for the South African Army) - Defence web
(“We also recognise that the LSSA employees have made a significant contribution to BAE Systems over the last 10 years, and we believe that transitioning ownership to Denel will better position the LSSA business to achieve its full potential working with a strong South African company.”
The transaction includes sale by BAE Systems of its 75% interest in LSSA, as well as sale by DGD Technologies (2001) Proprietary Limited of its 25% stake in LSSA as LSSA is a joint venture between the two companies.
LSSA has comprised three business segments employing approximately 500 people. The LSSA business specialises in the design and manufacture of military tactical-wheeled vehicles, mechanical driveline products, precision-machined components and gears, fire directing systems, and remote weapon launching platforms, subsystems and products.
Riaz Saloojee, Chief Executive Officer of Denel said, “This proposed acquisition is in line with our company’s strategy to broaden our leading land system solutions through the addition of resources and assets, such as those of LSSA, which complement our capabilities in the design and integration of combat turrets, artillery and infantry systems and armoured vehicles.”LSSA already works with Denel, supplying commander and gunner sights for the Badger 8x8 infantry fighting vehicle being developed by Denel Land Systems for the South African Army) - Defence web
So looking at all of this one wonders what the problem could be......
This move has left everyone wondering why.....Its a pity they didn't do it with SABC which is making a loss. A least Denel is making a Profit.
MY QUESTIONS
1. Denel went from huge losses to profit.2. Why does it sound as if ANC wants to get rid of parts of a profitable business.3. It is employing plenty of people.4. I can find nothing that questions the Chairman at any stage,5. The Badger will by the looks of things be a big money maker.6. The Guptas and the Zumas own parts of the Badger. How did this come about.7. A new Chairman has been appointed that has no credibility whatsoever. He was branded a thief. 8. Why hire him unless No 1 wants a puppet.9. Why get rid of someone who has been a huge money spinner for the company. 10. Whatever the ANC says about this sacking...I don't know if I will believe it.11.The whole thing smacks of corruption of something or plans they don't want us to know about.12.There is collusion here for the Guptas and the Zumas I believe.
Lets wait and see what is revealed.
3RD FEBRUARY 2016
- Well by now everyone has seen the news. VR Logistics, has taken over 49% of Denel, a hugely profitable Business.
In August 2014, City Press reported that President Jacob Zuma’s son, Duduzane and Rajesh “Tony” Gupta had a 25.1% stake in VR Laser through Craysure Investments, which in turn is wholly owned by Westdawn Investments.
Company records show Gupta and Zuma are directors in Westdawn, and both Westdawn and Craysure share a registered office in Midrand, Gauteng.
- If it is so open and transparent.....why are they hiding behind shell companies
 |
| THE GUPTAS GET IT ALL!! |
 |
| the only person missing here is Prez Zuma, Duduzane ZUMA back left |
Stefaans Brümmer, Sam Sole & Craig McKune
The Guptas have done it again – this time by teaming up with state-owned arms manufacturer Denel to profit from the sale of its products in the East.
Denel announced the formation of joint venture company Denel Asia last week but did not identify the controversial family as shareholders by name.
The family’s latest success in appropriating state opportunity comes amid a revolt in the ruling alliance about their influence in high places.
Following the ANC executive’s annual lekgotla last week, party secretary general Gwede Mantashe reportedly said that a “warning came out very strongly” against the “capture” of state-owned enterprises by “people outside the state”.
Recent controversies include the acquisition of Optimum Coal, an Eskom supplier, by a Gupta company. Optimum’s owner, Glencore, agreed to sell after the power utility squeezed Optimum financially and Mineral Resources Minister Mosebenzi Zwane visited Glencore’s Swiss headquarters at the same time as a Gupta delegation. ANC REFUSED TO PAY WHAT THE COAL WAS WORTH & HAD TO TAKE LESS THAN COST
Eskom has denied it influenced the sale, saying a R2.5-billion fine it imposed on Optimum for poor quality coal was provided for in their contract. Zwane’s spoksperson has said the minister’s visit to Switzerland was according to his policy of engaging with stakeholders and to avoid job losses.
There are similar claims, though, of unfair play paving the way to the Denel deal – in this instance over the bodies of officials who might have opposed it.
"VR Laser, a company with 20 years extensive experience [in] defence and technology in South Africa"
The joint venture was concluded in the absence of Denel’s permanent chief executive, chief financial officer and company secretary, all three of whom are on suspension.
Several sources sympathetic to the three have indicated that there is a strong suspicion they were removed to clear the way for the deal. Denel says they were suspended for their roles in an unrelated matter.
-I said last year that they were suspended because they were in the way of something.
Announcing the joint venture, Denel said in a press release last week Thursday that Denel Asia, headquartered in Hong Kong, would help Denel “find new markets for our world-class products, especially in the fields of artillery, armoured vehicles, missiles and unmanned aerial vehicles”.
Denel Asia would “focus its marketing attention on countries such as India, Singapore, Cambodia, Indonesia, Pakistan, Vietnam and the Philippines who have all announced their intentions to embark on major new defence acquisitions”.
Denel’s joint venture partner in the company was identified as “VR Laser, a company with 20 years extensive experience [in] defence and technology in South Africa”. Denel also said that VR Laser had “a good understanding” of the target “markets and opportunities”.
- 20 YEARS!! APARENTLY VR LOGISTICS WAS ESTABLISHED IN 2014
Denel did not answer amaBhungane questions this week about Denel Asia’s ownership breakdown. But Hong Kong corporate records show that it was founded on January 29 with Denel holding 51% and VR Laser Asia 49%.
Value of VR Laser
VR Laser Asia was registered in Hong Kong after the Gupta family and associates acquired VR Laser Services, a Boksburg engineering firm, two years ago – another deal that attracted controversy (see "VR Laser and the Guptas" below).
VR Laser Services specialises in steel cutting and processing. Its only apparent exposure to the defence industry is as supplier of components such as armour plate and armoured vehicle hulls. And although the Guptas themselves have done business in at least India and Singapore, VR Laser Services’ own footprint is local.
Denel did not answer amaBhungane questions probing the value of VR Laser’s contribution and the possibility that the Guptas would profit from Denel sales without contributing to them. The questions included:
- What value would VR Laser bring to the joint venture given its apparently limited experience in defence marketing and limited exposure to the Denel product range, which extends well beyond armoured vehicles?
- Would Denel Asia have the exclusive right to market Denel products in the target countries or would Denel and its other subsidiaries also have the right to market there?
Momentum for the joint venture appears to have built after Public Enterprises Minister Lynne Brown appointed a new Denel board in late July. She retained only one member of the outgoing board, Johannes “Sparks” Motseki, “for purposes of continuity”.
Motseki, a former treasurer of the Umkhonto weSizwe Military Veterans Association, is a Gupta business partner. A company of which he is the sole director was allocated 1.3% in a Gupta-led consortium that bought a uranium mining company now named Shiva Uranium in 2010.
These shares, if Motseki still has them, would now be worth about R80-million based on the claimed net asset value of Oakbay Resources and Energy, Shiva’s listed parent.
"Suspended in respect of their roles" in acquisition
Denel did not answer directly whether Motseki had recused himself from making decisions about the joint venture, but said: “Mr J Motseki has fiduciary duty to act in the best interest of Denel and has never influenced Denel to do business with any persons that he knows in whatever capacity.”
Among the new board’s first acts, in September, was to suspend Denel chief executive Riaz Saloojee, chief financial officer Fikile Mhlontlo and company secretary Elizabeth Africa. No formal reasons were given at the time.
Denel this week said Saloojee and Mhlontlo were “suspended in respect [of] their roles in the acquisition of LSSA [Land Systems South Africa] by Denel, where Denel paid R855-million, of which Denel business was negatively affected. The disciplinary process is under way.”
Denel bought LSSA, an armoured vehicle manufacturer, from arms multinational BAE Systems before the new board’s appointment.
There are questions, however, about the strength of the charges against the officials. One legal and one other source acquainted with the matter this week said disciplinary hearings have not commenced but that an informal mediation process was about to start.
The three officials said they were precluded from commenting. Their attorney, Zarina Walele, also declined comment.
Gupta family spokesman Gary Naidoo failed to respond to questions by the time of going to press. VR Laser chief executive Pieter van der Merwe did not return calls or respond to questions emailed both to the firm and to Naidoo for VR Laser’s attention.
Motseki did not return calls. – Additional reporting by James Wood.
VR Laser and the Guptas
VR Laser Services first came to wider public attention in July 2014 in an amaBhungane story headlined: “Transnet tender boss’s R50-billion double game”.
The story outlined how a friend of the Guptas, Iqbal Sharma, had obtained an interest in the company while it was in pole position to benefit from subcontracts in Transnet’s R50-billion tender for locomotives. At the same time, he was chairing the Transnet committee that oversaw the tender process.
Sharma denied any conflict of interest and took amaBhungane to the press ombudsman, but his complaint was dismissed.
At the time, a key part of the story was that the Guptas’ interest in VR Laser was not initially disclosed. Westdawn Investments, a Gupta contract mining company, better known as JIC Mining Services, took a 25% stake in VR Laser Services, and Salim Essa, another Gupta business associate, took 75%. Duduzane Zuma, the president’s son, also acquired a stake through Westdawn. Sharma’s stake was by ownership of VR Laser’s premises.
Since then, the Gupta family’s control of VR Laser has become clearer. Corporate records show that VR Laser is registered to the same Grayston, Sandton, office park where other Gupta businesses are based. VR Laser’s only three directors are Essa, Pushpaveni Govender, who is also a director of other Gupta companies, and Kamal Singhala, a 25-year-old nephew of the Guptas who gives his address as the family’s Saxonwold compound. – Sam Sole and Stefaans Brümmer
Kamal Singhala. Picture: Twitter
Joint venture not approved by ministers
Denel launched its Gupta joint venture, Denel Asia, without approval from the finance and public enterprises ministers as required.
Public Enterprises Minister Lynne Brown’s spokesperson, Colin Cruywagen, said on Thursday: “Minister Brown gave pre-approval with strict conditions that included a viability study and a due diligence on the transaction. There are still other conditions to be met before final approval can be granted.”
Pressed whether the minister, who represents the government as Denel’s only shareholder, was concerned about the launch of the deal, Cruywagen would only say: “Interactions between the minister and the board are confidential. For questions about operational matters of Denel, I refer you to Denel and the board.”
The treasury’s spokesperson, Phumza Macanda, said Denel’s application seeking Finance Minister Pravin Gordhan’s approval had been received but the treasury “is still processing it”. She said Denel required both ministers’ approval under the Public Finance Management Act as “it is a significant transaction” for Denel and in line with government guarantee conditions. Denel did not respond to urgent questions on Thursday whether it and its board exceeded their authority. – Craig McKune and Stefaans Brümmer
* Got a tip-off for us about this story? Click here.
The M&G Centre for Investigative Journalism (amaBhungane) produced this story. All views are ours. See www.amabhungane.co.za for our stories, activities and funding sources.
ALL INFORMATION TAKEN FROM BD LIVE, NEWS 24, m&G AVAILABLE ON THE INTERNET
No comments:
Post a Comment