Denel Aeronautics works with military aircraft, such as Cheetah/Mirage III Variant and Lockheed Martin Hercules C-130 / L-100. Photo: Denel.

Home » South African Arms Manufacturer Denel to Take Legal Action to Recover Losses

South African Arms Manufacturer Denel to Take Legal Action to Recover Losses

The South African arms manufacturer Denel, trying to claw its way back from years of maladministration and alleged deals benefiting the Guptas, is taking legal action to recover losses made during that time, according to the CEO Danie du Toit. In a statement today Du Toit said Denel had already received several reports concerning improper […]

By Ted Botha
31-07-19 17:57
in News
Denel Aeronautics works with military aircraft, such as Cheetah/Mirage III Variant and Lockheed Martin Hercules C-130 / L-100. Photo: Denel.

The South African arms manufacturer Denel, trying to claw its way back from years of maladministration and alleged deals benefiting the Guptas, is taking legal action to recover losses made during that time, according to the CEO Danie du Toit.

Denel Aeronautics works with military aircraft, such as Cheetah/Mirage III Variant and Lockheed Martin Hercules C-130 / L-100. Photo: Denel.
Denel Aeronautics works with military aircraft, such as Cheetah/Mirage III Variant and Lockheed Martin Hercules C-130 / L-100. Photo: Denel.

In a statement today Du Toit said Denel had already received several reports concerning improper transactions, irregular appointments and potential fraud, while several forensic investigations into alleged fraud and misappropriation of funds conducted by its previous management were at an advanced stage, and this would soon result in legal actions to recover losses.

Denel has found itself in such dire circumstances that it is struggling to pay staff salaries each month, according to recent news reports. In June it managed to get a loan to pay salaries, although the Minister of Public Enterprises said the company had $2.1 billion worth of contracts in the pipeline.

“We started with thorough investigations more than six months ago, shortly after the appointment of the new Denel Board,” said Du Toit.

As a result of the forensic reports, Denel had already taken several steps, he said, which included launching civil action against some former Denel executives to recover monies lost through the irregular awarding of pilot bursaries.

A case would also be launched to review contracts between Denel and VR Laser, a Gupta-owned company. Disciplinary action would also  be taken against employees implicated in the reports.