The SA National Defence Force faces the threat of running short of ammunition because of Denel’s crippling financial situation.
A damning letter written by the SA Air Force’s chief director of force development and support, Maj-Gen Setete Malakoane, lays bare just how dire a situation the SANDF faces in terms of maintaining its combat equipment and equipping troops.
The letter, which Malakoane wrote to the chief of the SAAF, Lieut-Gen Mzayifani Buthelezi last week Monday, calls for urgent guidance.
Parliament’s joint standing committee on defence chairperson Cyril Xaba said they were scheduled to be briefed by Denel on its challenges, including governance issues, in June.
“Intense discussions are currently under way between Denel, Armscor and the public Enterprises department on Denel’s financial liquidity status. These discussions involve the defence department.
“While we do not want to pre-empt the outcome, I will say that we are alarmed. Denel’s situation threatens SA’s security.”
He said Denel’s situation impacted not just the SANDF, but SA’s larger defence industry.
“We cannot risk SA losing its defence capabilities, which have taken decades to build.”
Xaba said the clock was ticking for solutions to be found.
“If aircraft cannot be maintained, pilots cannot fly, which means they lose their flying licences. That means our skies are undefended. The same goes for the navy. We cannot have undefended skies and coastlines.
“We are not giving Denel a lengthy period to find a solution. Time is of the essence and solutions must be found now.”
SANDF spokesperson Brig-Gen Mafi Mgobozi, in response to detailed questions from Sunday Times Daily, offered a brief reply: “Matters pertaining to the SANDF combat readiness are discussed before parliament on a continuous basis between the department of defence, and the portfolio committee on defence and military veterans as well as the joint standing committee on defence and military veterans.”
Denel spokesperson Pam Malinda failed to respond to questions.
The letter comes as SADC is set to make a regional appeal to member states to provide military hardware and troops to help quell a deadly insurgency in northern Mozambique, which has displaced over 700,000 civilians and left more than 3,000 people dead.

Malakoane’s letter reveals how Denel’s financial situation and its impact on the maintenance of the SAAF’s Rooivalk attack helicopters, Oryx transportation helicopters, Gripen and Hawk fighter jets, C130 heavy transport aircraft and supply of ammunition for the SANDF’s small and medium sized weapons was discussed by the SAAF Budget Control Committee (BCC) in three separate meetings in April.
“The SAAF BCC acknowledges the reality that the support provided to operations by the C130, Rooivalk and Oryx aircraft systems respectively increased drastically.
“The role played by the defence industry must complement the SAAF’s capability in the most efficient and cost-effective way, subject to operational necessity.
“The SAAF, through Armscor, has entered into product support and maintenance contracts with Denel Aeronautics to provide the required capabilities.”
Malakoane said in the letter that Denel’s financial situation has created severe challenges for the SAAF, resulting in its combat readiness being “compromised” because of failures to pay maintenance subcontractors.
“Denel is the original equipment manufacturer of both Oryx and Rooivalk helicopters. Denel has outsourced services to subcontractors to support systems and Denel’s current financial situation has created a loss of capabilities. This has impacted the operation of the SAAF and led to most of the aircraft systems being unavailable.
“Most of the ground support and test equipment in the operational area are unserviceable due to lack of maintenance and supply of spares by Denel.”
The letter states the unavailability of the C130 will see the SAAF unable to support the SANDF’s Joint Operations Division.
The Joint Operations Division helps to plan, direct and conduct SANDF operations.
What is worrying, is no one seems to have thought through the long term implication of Denel sinking.
— Defence analyst Helmoed Heitman
“Denel Pretoria Metal Pressing is contracted for aircraft power cartridges (aircraft pilot and crew escape systems) and small to medium calibre weapons ammunition to support the SANDF. Denel’s current situation will have a huge impact on the supply of ammunition and combat readiness of the SANDF.”
Malakoane adds that the current situation is leading to the potential collapse of the SAAF’s helicopter operations, with the air force at risk of having a limited number of serviceable fighter jets available because of maintenance issues.
Defence analyst Helmoed Heitman said the SANDF was facing a serious problem, “which will become a total catastrophe if Denel implodes, which seems likely”.
He said while certain aircraft could continue to be maintained if Denel fell apart, it would have to be done by overseas companies.
“This will place the SANDF in a compromised position. Not only financially because of current foreign exchange rates, but also because it means we will be dependent on other countries and foreign defence industries for the SANDF to function.
“That’s the last place any country wants to be especially if you enter into a conflict. The last thing you need is your supply plug pulled while trying to fight in a conflict.”
He said most SANDF equipment to some extent depended on Denel, including the R4 rifles which the troops use, long range artillery cannons and the navy’s frigate missile systems.
“What is worrying, is no-one seems to have thought through the long-term implication of Denel sinking. If Denel collapses and 20 years from now we decide to re-equip the defence force, we will have to import everything from equipment to engineers.
“That means our defence force’s strategic independence, which is vital to ensure a military is self-sustaining, will be lost. Our military will be beholden to others to function.”




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