WATCH LIVE | Former Denel CEO testifies at state capture inquiry
Denel is in the spotlight as the Zondo Commission of Inquiry into State Capture resumes on Wednesday.
Former Denel board chair Martie Janse van Rensburg told the inquiry on Tuesday that the joint venture between the state armaments company and VR Laser, a company owned by an associate of the Gupta family, did not "make commercial sense".
"The outgoing board did not consider the establishment of Denel Asia. In my opinion, if you would like to establish such a type of subsidiary in another country, there's a lot of market intelligence homework that needs to be done," she said.
In January 2016, the formation of Denel Asia was announced. It was described as a Hong Kong-based joint venture between Denel, which would control a 51% holding of the company, and VR Laser, which belonged to long-time Gupta ally Salim Essa. This came about six months after a new board was appointed at Denel by former public enterprises minister Lynne Brown.
Former Denel group CEO Riaz Salojee is due to testify on Wednesday.