Dear Editor
While SANDF soldiers are dying in the DRC, the SIU today confirmed that Denel received and was paid R8.3 billion for a contract signed in 2007 to deliver 264 Badger armoured personnel carriers over the following ten years. It’s been almost twenty years since signing that ten year contract. To date, none of these have reached our troops. Not one.
A shortage of armoured vehicles has been highlighted as a critical flaw leading to previous military disasters such as the Battle of Bangui. The SIU also indicated today that this contract likely has a bearing on the current conflict.
This flagrant looting is tantamount to treason, it undermines our national security.
Denel subcontracted its work on the armoured personnel carriers to thirty entities including the notorious Gupta and Zuma-linked firm VR Laser.
The Badger contract is just one of many horror stories at Denel. The SIU detailed how Denel was swindled out of the intellectual property it generated in the design of two missiles. The missile IP was ultimately transferred to a firm in Dubai. The Denel staff involved also joined the Dubai firm.
Meanwhile, in a separate missile matter, Denel has failed to certify the missiles needed to equip our Gripen fighter jets with strike power, making the jets impotent for DRC combat. So we’re leaking IP while failing to arm our troops.
These cases highlight the terrible lack of internal controls and consequence management at the SOE. Denel has also received R9 billion in fruitless bailouts over the last five years, yet its financial situation remains dire.
There is no turnaround at Denel. Our soldiers are paying the ultimate price for the abhorrent mismanagement at Denel and the Department of Defence. The DA will reject any further bailouts at Denel.
We call on the Minister of Defence to address the mismanagement at Denel and the Department of Defence because when we allow these entities to loot, ultimately it affects our ability to shoot.
Regards
Dr Mark Burke
DA Spokesperson on Appropriations
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