Gupta-linked deal on agenda
Finance minister resisting pressure
THE fight between National Treasury and Denel over a Guptalinked deal could be resolved next week when they meet with Parliament, following months of a stand-off.
MPs yesterday expressed unhappiness that the deal with VR Laser did not make business and financial sense, but that Denel continued to push it through.
Finance Minister Malusi Gigaba has refused to approve the joint venture between Denel and VR Laser.
This was the same stance taken by his predecessor at National Treasury, Pravin Gordhan, who blocked the deal.
Gordhan led the charge in Parliament against Denel when he questioned the interest by the state arms manufacturer to pursue the deal.
Gordhan also asked Denel chairperson, Daniel Mantsha, about the outcome of his meeting with Gigaba who had instructed Denel to scrap the deal with VR Laser.
Gigaba had also asked Denel to withdraw its court application to try to force the approval of the joint venture.
MPs across parties said they needed more answers from Denel. They said there were a lot of holes in the presentation and explanations given for the need of the partnership with the Gupta-linked company.
ANC MP Mondli Gungubele accused Denel of skirting issues during the meeting with the portfolio committee on public enterprises. “We need to ask Denel not to debate with the committee. There are facts and they must respond,” said an irritated Gungubele.
This was after Denel gave long answers on its decision to get into bed with VR Laser.
But Gordhan asked Denel about the report by Dentons and another probe by ENSAfrica stating that entering into partnership with VR Laser was a financial risk.
Narend Singh, of the IFP, said there were a lot of issues that came out of the State of Capture Report and Parliament needed to look at the officials implicated in that report.
Singh also demanded answers on the issues raised in the affidavit of former dir- ector-general in the National Treasury, Lungisa Fuzile, that VR Laser was insolvent.
Acting committee chairperson, Zukiswa Rantho, said they need both National Treasury and Denel to get to the bottom of the issues.
The meeting has been set down for next Wednesday.
Denel board chairperson, Daniel Mantsha, said they hadn’t been captured by the Guptas. Denel wasn’t involved in state capture, he said.
He confirmed that he met Gigaba on the sidelines of the World Economic Forum in Durban two weeks ago, where they discussed the VR Laser deal. He did not say whether Gigaba instructed him to cancel the deal and withdraw the court application. “On the meeting with the minister, he called us. He wanted to understand why there was an impasse. It was to explain to the minister where this process comes from.”