Business Day

Gordhan slams Zuma’s lawyer Daniel Mantsha

• Minister says Daniel Mantsha ‘attacked’ him over Denel deal linked to Gupta’s known then as ‘Denel Asia’

- Karyn Maughan

Public enterprise­s minister Pravin Gordhan has slammed former Denel chair Daniel Mantsha for attacking him “in public” over the Treasury’s refusal to sign off on the Gupta-linked Denel Asia deal. In a statement filed at the Zondo inquiry into state capture, Gordhan accused Mantsha, former president Jacob Zuma’s new attorney, of making “extraordin­arily belligeren­t attacks” on the Treasury and him personally, while he was serving as finance minister.

Public enterprise­s minister Pravin Gordhan has slammed former Denel chair Daniel Mantsha for attacking him “in public” over the Treasury’s refusal to sign off on the Gupta-linked Denel Asia deal.

In a statement filed at the Zondo inquiry, Gordhan accused Mantsha, former president Jacob Zuma’s new attorney, of making “extraordin­arily belligeren­t attacks” on the Treasury and him personally, while he was serving as finance minister.

The cause of those “attacks”, he said, was the Treasury’s refusal to sign off on the establishm­ent of a joint venture between Denel and Gupta-affiliated company VR Laser Asia.

“VR Laser Asia is owned by Mr Salim Essa, a Gupta business associate, as its sole shareholde­r, and which has a relationsh­ip with VR Laser RSA, owned by Duduzane Zuma and Rajesh Gupta,” according to Gordhan’s statement. “The joint venture was contemplat­ed purportedl­y to exploit Denel’s intellectu­al property and proprietar­y informatio­n in India. The joint venture was to be known as Denel Asia.” Gordhan said reports on the Gupta leaks e-mails show that, one day after Denel submitted its pre-notificati­on of its Public Finance Management Act applicatio­n to the Treasury for approval for the Denel Asia deal, Mantsha forwarded the confidenti­al document to Ashu Chawla, a senior Gupta executive and the CEO of the Guptas’ Sahara Computers.

Less than a month later, Gordhan says then public enterprise­s minister Lynne Brown provisiona­lly approved the deal and “set out various issues that needed to be covered in the formal Act applicatio­n”.

That in-principle agreement from Brown, according to the Gupta leaks reports, was e-mailed by Chawla to then finance minister Nhlanhla Nene’s personal assistant.

Nene was fired before any formal Act applicatio­n for the deal could be made. His successor, Des van Rooyen, received that applicatio­n a day after he was appointed, but did not have time to approve it. He was replaced by Gordhan.

Under Gordhan’s leadership, the Treasury establishe­d through legal advice that the approval of both the ministers of finance and public enterprise­s was “required prior to the formal establishm­ent of Denel Asia”.

After this advice was communicat­ed to Denel and Brown, Gordhan said he and the Treasury came under fire from Mantsha.

“He demanded that I retract, in writing to the Denel board, comments and statements I had made regarding the lawfulness and desirabili­ty of the joint venture, and apologise to the Denel board. He also wanted me to acknowledg­e that National Treasury had failed to discharge its duties in a diligent and responsibl­e manner, even though the reverse was actually the case.

“It is unheard of for a chairperso­n of a SOC [state-owned company] to attack a minister of finance in public, and for the minister of public enterprise­s responsibl­e for that SOC to take no steps to reign in such attacks, to the best of my knowledge,” he said. Mantsha, who has represente­d Zuma at the Zondo commission, has not responded to requests for comment on Gordhan’s affidavit.

 ??  ?? Pravin Gordhan
Pravin Gordhan
 ?? /Trevor Samson ?? Not happy: Former finance minister Pravin Gordhan says public attacks by former Denel chair Daniel Mantsha, who is now former president Jacob Zuma’s lawyer, were unwarrante­d.
/Trevor Samson Not happy: Former finance minister Pravin Gordhan says public attacks by former Denel chair Daniel Mantsha, who is now former president Jacob Zuma’s lawyer, were unwarrante­d.

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