Denel in fight for Gupta arms link

STATE arms manufacturer Denel has launched a legal bid to fight National Treasu decision to halt a joint venture with the Gupta-linked arms firm VR Laser Asia.

Denel said it had lodged an application with the high court in Pretoria yesterday.

“In spite of the company’s numerous attempts to work with National Treasury to explain the legal processes followed in establishing the Denel Asia joint venture‚ this matter remains unresolved and continues to unfairly cast doubt on Denel’s reputation and governance regime‚” Denel said.

“The doubts that have been cast over Denel Asia’s legal standing have led to negative perceptions about Denel from various stakeholders‚ clients and potential clients which has impeded the company’s ability to do business eff acting Denel Group CEO Zwelakhe Ntshepe said in the statement.

“The Asian-Pacific region is an important region for Denel to expand its business and find new markets for our world-class products‚ especially in the fields of artillery‚ armoured vehicles‚ missiles and unmanned aerial vehicles.”

The Sunday Times reported in August that Treasury and Denel were heading for a standoff over the VR Laser Asia deal.

VR Laser Asia’s sole shareholder is Gupta business partner Salim Essa. Its parent firm in SA is owned by Essa‚ the Guptas and President Jacob Zuma’s son Duduzane. — TMG