The Editor

PoliticsWeb

Dear Sir/ Madam

FACTUAL INACCURACIES IN ARTICLE ON PARASTATAL PRIVATISATION 

I would like to draw your attention to the factual inaccuracy contained in the article entitled "Parastatal privatisation would save SA billions" posted on your website on 23 November 2009 (see here). The reported figure relating to financial assistance received by Denel is incorrect.

Denel has not received R8 861 million from Government in the period 2005/06 to 2008/09 as indicated in the table. The state's investment in the organisation's turnaround strategy has amounted to R3 500 million to date. While Denel continues to consult with Government regarding the outstanding R1 700 million requested for the purposes of recapitalisation, the group is currently funded mainly by interest-bearing borrowings (amounting to R1 850 million). These are backed by government guarantees, as opposed to share capital.

We will be bringing this inaccuracy to Tim Harris' attention, and would be grateful if you would rectify the incorrect figures as it is important that facts are accurately reported upon.

If I can assist with any further information requirements regarding Denel, please do not hesitate to contact me directly. We believe it is critical that the public receives the correct facts regarding our turnaround strategy and Government's financial support of Denel; a prerogative I am confident we share with you.

Yours sincerely,

ZWELAKHE NTSHEPE

Group Executive: Business Development & Corporate Affairs

Issued by Letsema Communications on behalf of Denel, November 25 2009

Click here to sign up to receive our free daily headline email newsletter