Denel owes City of Johannesburg R290m - Mashaba
11 June 2018
Johannesburg Mayor Herman Mashaba said the City’s funds have been placed at risk due to unsecured lending to state-owned Denel through Regiments Capital, a company with links to Gupta-family associates.
In a statement, Mashaba said the loans to Denel amounted to R290m, with Regiments Capital acting as the middleman.
"Regiments was appointed to perform the fund management contract – following a tender process seemingly tailored for it as the incumbent. At the time, it was alleged that Regiments' bid was arguably the most expensive out of 11 competitors, including large banks and specialist fund managers, who were disqualified," Mashaba said.
"The City has now been alerted to the fact that Regiments Securities, acting as middleman, arranged a private placement of R290m from our sinking fund (managed by Regiments Capital) to Denel," he said.