Guptagate: Denel CEO fired under dubious circumstances
18 April 2016
It has come to light that the suspended CEO of Denel has been officially fired without being found guilty of any misconduct. The timing of his discharge is suspicious and lends credence to the notion that his dismissal was linked to his refusal to broker arms deals with the politically connected Gupta family.
The CEO, Mr Saloojee, the CFO and a group company secretary were suspended in September last year while the board examined a number of allegations related to irregular acquisitions. However, it is widely speculated that the suspension of these three officials is related to the creation of the new company Denel-Asia, and its links to the Guptas.
The DA further calls on both the Minister of Finance, Pravin Gordhan, and the Minister of Public Enterprises, Lynne Brown, to remain resolute against the deal proceeding until such a time as it has been established that all conditions set by National Treasury and Public Enterprises have been met and that the deal is free from political influence. The Ministers are duty-bound to ensure that state resources are not compromised or captured through the deal with the Guptas.
I will therefore be submitting questions to the Minister of Public Enterprises, as to why the CEO was fired and for a full explanation of the reasons. The DA will once again request for the Guptas to appear before the Public Enterprises portfolio committee to answer for the Denel-Asia and VR Lazer deal and other issues around Eskom.
According to reports, Mr Salojee was under pressure from third parties to form arms deals during 2014 and 2015. He was also pressured to make certain appointments in Denel subsidiaries. It is his refusal to bend to these politically motivated pressures that have likely led to his dismissal.
It was recently confirmed that the VR Laser deal with Denel did not have Treasury approval. Finance Minister, Pravin Gordhan, stated last week that the registration of Denel Asia was illegal and contrary to the Public Finance Management Act (PFMA). Why then was the deal allowed to proceed?
The DA has been calling for the the Portfolio Committee to investigate the capture of a number of state entities by the Guptas. Yet the Committee Chairperson, Ms Letsatsi-Duba, has so far blocked these requests on baseless grounds given that there is ample scope to conduct this investigation. One can only conclude that she is attempting to protect President Zuma from harm. I have responded with a letter that spells out clearly why the Guptas must legally appear in Parliament and await a further response.
The fact that members of the Gupta family have departed South Africa does not mean that their influence has left with them. They retain ownership of a number of companies linked to dubious state contracts. The need for a full investigation is only growing.
We cannot allow billions in public funds to be used to prop up ailing state entities for the benefit of a few connected individuals with links to President Zuma. The DA will continue to push for transparency rooted in our commitment to ending corruption, which is a scourge to all South Africans.
Issued by Natasha Mazzone, DA Shadow Minister of Public Enterprises, 18 April 2016
