State-owned arms dealer Denel seems likely to resume disciplinary action against its axed CEO, Riaz Saloojee.Denel reinstated his contract this week, demanding that he return his R2.7-million settlement payout and face a disciplinary hearing.The reason for Denel's about-turn is not known."Due to legal processes under way, we are unable to comment on the matter," Denel spokesman Pam Malinda said yesterday.Denel first suspended Saloojee in September after he was accused of causing a cash crunch by changing the repayment terms of a R455-million Nedbank loan from five years to six months. He ostensibly did this in order to buy BAE Land Systems SA.Denel fired him last month without finding him guilty of misconduct.Saloojee said last week that he would not have approved Denel's partnership with the Gupta-linked arms company VR Laser Asia if he had been in charge at the time.This led to speculation that he was suspended so that the deal could go through in January.VR Laser Asia is wholly owned by Gupta business partner Salim Essa, who is also the majority shareholder of its South African parent company. Other shareholders include president Jacob Zuma's son, Duduzane.The Treasury said the deal was illegal because it had not given its approval.Denel said it had complied with the law and had told the Treasury of the deal in December but had not received a response after 30 days.Denel's acting chief financial officer, Odwa Mhlwana, recently told parliament that Saloojee had been given the opportunity to attend a disciplinary hearing.Salojee said this was a lie.In an interview last week Saloojee accused Mhlwana of misleading parliament."He said they afforded me the opportunity to go to a disciplinary hearing. They did not."..