Ntshepe defends decision
Former Denel chief executive testifies at the commission of inquiry into state capture
FORMER Denel chief executive Zwelakhe Ntshepe yesterday defended the company’s awarding of lucrative contracts to Gupta-owned VR Laser.
Ntshepe initially testified at the commission of inquiry into state capture that he thought he had the authority to approve the deals.
After intense questioning by commission chairperson Deputy Chief Justice Raymond Zondo, he later admitted that the decision to approve the contract was in breach of the policy.
“I believed I had the authority to approve this,” said Ntshepe.
Ntshepe defended the single-source supplier agreement between Denel Land Systems (DLS) and VR Laser, saying the memorandum of agreement was already signed with the Gupta-owned company and he feared VR Laser would take Denel to court if it did not honour the agreement.
According to Ntshepe, when he signed the agreement, he was not concerned about auditors picking up that the contract was awarded in violation of Denel’s supply chain management policies. He also denied not taking his subordinates seriously.
Ntshepe said he overruled Denel’s former group supply chain management executive Mandla Mlambo because the work that needed to be done by VR Laser was urgent.
”I did not undermine him, it was in the best interests of the company to be able to do the work on time,” he said.
Asked by evidence leader Paul Kennedy SC why he undermined former DLS supply chain management executive Celia Malahlela, who queried the awarding of the single supplier deal with VR Laser, Ntshepe responded: ”In my tenure at Denel, I ensured that everyone had the ability to do their work without fear or favour.
“She never came to me and said she was being undermined.”
Ntshepe said former DLS chief executive Stephan Burger was also critical of Mlambo and that, in many instances, the two executives did not agree with each other.
He also told the commission he instructed former Denel Vehicle Systems (DVS) chief executive Johan Steyn to sign a single source supplier agreement with VR Laser.
Ntshepe said he gave instructions to Steyn and another executive Johan Wessels, to negotiate a single source supplier agreement with VR Laser because it was a resolution from the Denel board.
”I concede and agree that I instructed them,” he said.
He said it made sense to piggyback on the existing agreement with VR Laser.
Ntshepe said he gave the instruction for the single source supplier agreement, despite the deal between
DLS and VR Laser having been done without following proper procurement processes.
”I never forced anyone at Denel to do anything.
“If Steyn had reservations, he knew what to do. They were not serious reservations,” he said.
Ntshepe insisted that he did not force Steyn to sign the agreement with VR Laser.
He said anyone who felt they were forced should have laid a complaint internally or to the Department of Public Enterprises.