VR Laser SA deal had minimal benefit for Denel, state capture commission hears

THE FORMATION of the controversial arms marketing partnership between South Africa’s arms manufacturer Denel and Gupta-linked VR Laser SA did not follow proper procedure and would have been of minimal benefit to Denel, the state capture commission of inquiry heard yesterday.

Former Denel board chairperson Martie Janse van Rensburg testified on her tenure at Denel between 2011 and 2015.

She detailed how her board successfully executed a turnaround strategy to make Denel profitable, leaving R1.9 billion cash in the bank.

The board and chief executive Riaz Saloojee’s stellar performance at Denel received accolades from both former ministers of public enterprises Lynne Brown and her successor Malusi Gigaba.

However, Brown chose to unilaterally appoint a new board and not retain the much-needed expertise of Janse van Rensburg’s team to complete the Denel turnaround strategy.

Janse van Rensburg’s evidence followed that of former deputy director-general at the Department of Public Enterprises Kgathatso Tlhakudi on Monday, who detailed how Brown deviated from normal processes to appoint a controversial new board in 2015, led by Gupta-linked Daniel Mantsha, who once served as former president Jacob Zuma’s lawyer.

Commission chairperson Deputy Chief Justice Raymond Zondo asked Janse van Rensburg who would have benefited more from the deal.

She replied: “On the holding structure, VR Laser would have benefited.’’