Gigaba and Brown to meet on Denel's Gupta-linked venture

Finance Minister Malusi Gigaba and Public Enterprises Minister Lynne Brown plan to meet in a bid to resolve the impasse over the creation of Denel Asia‚ Denel acting chairman Daniel Mantsha said in Parliament on Wednesday.

Mantsha and acting chief financial officer Odwa Mhlwana appeared before Parliament's public enterprises committee to update MPs on the progress made with regard to the establishment of Denel Asia as well as the outcome of proceedings against former CEO Riaz Saloojee‚ former chief financial officer Fikile Mhlonto and former secretary Elizabeth Africa.

The proceedings against these former executives have been closed and they have left Denel.

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The committee meeting got off to a heated start‚ with MPs objecting strongly to the absence of Treasury - a key player in the Denel Asia saga - and of Denel board members‚ who Mantsha explained could not be present as they were involved in strategic planning sessions.

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Mantsha said he had met with Gigaba‚ who was concerned about the developments around Denel Asia‚ a joint venture with Gupta-linked VR Laser Asia.

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Treasury refused to approve the transaction and Denel has taken the matter to court in order to get clarity on the interpretation of the law relating to the transaction and to evaluate the processes followed to get it approved by Treasury.

Mantsha said Brown would meet Gigaba in a bid to resolve the matter "in the interests of Denel and Treasury".

Brown has told Denel that Denel Asia cannot trade until the issue has been resolved.

Mhlwana explained that the motivation for the creation of Denel Asia which he said was vital for Denel to develop its export market in Asia.

-TMG Digital/BusinessLIVE