Guptas vs Oppenheimers: Controversy over use of luxury airport terminal

The State Security Agency (SSA) warned state-owned defence equipment manufacturer Denel that its apparent efforts to frustrate the Oppenheimers, a wealthy South African family, in their Fireblade luxury VVIP terminal at OR Tambo International Airport, would land it in court and had the potential to embarrass the government, leaked e-mails suggest.

A trail of communication between SSA and Denel,forwarded to a Gupta company e-mail address and leaked to The Times, suggests Denel tried to strong-arm the Oppenheimers out of an agreement allowing Fireblade to operate at the airport.

At the time of the leaked communication, Denel had informed Fireblade it needed to get security clearance from SSA to allow it to operate international flights from the luxury terminal.

But this had never been a condition of Fireblade's agreement with Denel when it leased property from it at the airport to operate the terminal.

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A leaked letter from Bheki Langa, SSA's acting director-general at the time, to Denel chairman Daniel Mantsha shows the agency anticipated that the dispute would land it in court because Denel was requesting security clearance from the Oppenheimers, which was not part of the lease agreement.

SSA also had no knowledge of such a requirement. This correspondence was forwarded to the Guptas.

The Oppenheimers claimed in court papers served on then home affairs minister Malusi Gigaba in November that the Guptas, who have a close relationship with President Jacob Zuma, tried to use their influence over Denel to hijack the project, an allegation Gigaba, Denel and the Guptas have denied.

The Oppenheimers have claimed SSA security clearance Denel was insisting on was fabricated to create a contractual dispute that could result in Fireblade losing the lease at the airport.

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The leaked documents reveal how Mantsha wrote to Nicky Oppenheimer in February last year saying Denel required security clearance from SSA so it could allow Fireblade to use the leased premises for international flights.

Two weeks later Langa replied, concerned about the request he made to the Oppenheimers.

"SSA has not received any formal correspondence to date from Denel that a specific clearance was required to allow the company to lease the premises," the letter reads.

The letter shows SSA was not aware of the required security clearance and asked for more details from Denel.

"SSA would also want to take this opportunity to assure you of our commitment to speedily assist any process that can conclude this matter amicably in order to avoid the risk of being drawn into a legal dispute that has the potential to jeopardise the integrity of government and its related governance processes," Langa wrote.

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Despite this, Denel has insisted the Oppenheimers' comply with national security legislation, even though the requirement was seemingly unknown to the SSA.

Yesterday SSA spokesman Brian Dube refused to comment, saying the agency did not want to be drawn into "those shenanigans".

"The courts will determine its preference on the matter and those involved will have to adhere to that," he said.

The November court papers reveal how two former Gupta pilots claimed the family had allegedly tried to wrest control of the terminal from the Oppenheimers

The Sunday Times reported last year that Fireblade had opened for domestic flights in 2014 but had not yet been granted international rights. The Oppenheimers intended to serve international flights that could make the terminal profitable. Instead, Fireblade haemorrhaged money.

The report said Fireblade paid Denel R1.4-million a month in rent and salaries. Losses up to the end of last July amounted to R163-million.

The leaked documents come on the back of revelations that the Guptas paid for a business-class trip for Mantsha to Dubai in October 6 2016 and further arranged for a chauffeur for him there.

Denel is connected to the Guptas through its controversial joint venture with VR Laser Asia, which is owned by Gupta associate Salim Essa.

Further leaked e-mails show the Guptas have a stake in the joint venture as details of an agreement were sent to Tony Gupta.

While the Guptas have repeatedly stated they had no stake in VR Laser Asia or the joint venture, its parent company in South Africa, VR Laser, is owned by President Zuma's son, Duduzane, and the Guptas.

Attempts to get comment from Denel were unsuccessful. The Guptas were approached for comment through their attorney but, as with other queries on these e-mails this week, had not replied.

The Oppenheimers' lawyer, Duncan Butcher, said he was not at liberty to comment as the matter was sub judice.

"I cannot discuss that because there is a court hearing coming up," he said.