Guptas named in R10 billion joint venture with state-owned arms maker, Denel

Directors of state-owned arms manufacturer, Denel, could face charges of financial misconduct over a R10 billion deal with a Gupta-linked company.

Denel entered into a joint venture with Gupta-owned company, VR Laser, a move that Minister Pravin Gordhan claims to be in contravention of the Public Finance Management Act.

702/Cape Talk's Redi Tlhabi spoke to amaBhungani investigative reporter, Stefaans Brummer, regarding the matter.

Listen to the conversation below:

In 2013, a friend of the Guptas, Iqbal Sharma, starts negotiating to buy VR Laser from it's then owners. He also happened to be on the Transnet Board and the head of the procurement committee.

Stefaans Brummer, amaBhungane investigative journalist

Mid last-year, a new Denel board is appointed. Public enterprises Minister Lynne Brown appoints an entirely new board expect she retains one person who is Sparks Motseki, an MK vets man and a big business partner of the Guptas.

Stefaans Brummer, amaBhungane investigative journalist

Denel prepares to ask Public Enterprises and Treasury for permission to form a partnership with this company. Treasury sends them back to the drawing board.

Stefaans Brummer, amaBhungane investigative journalist

Denel submits the application on 10th December, the day after Nhlanhla Nene was fired. When Des van Rooyen steps into his office, he has to adjudicate on this deal.

Stefaans Brummer, amaBhungane investigative journalist

Denel couldn't get what it wanted. It's waiting for Gordhan's Treasury to give it permission. But the strange thing is that without getting permission, it goes ahead and announces the deal and forms a joint venture and this is 49% owned by VR Laser Asia.

Stefaans Brummer, amaBhungane investigative journalist

The PFMA is clear that board members commit financial misconduct when they go ahead and form a joint venture, an offshore company without gaining permission.

Stefaans Brummer, amaBhungane investigative journalist

Recommended

by NEWSROOM AI
Read More
How to get rid of stigma and thrive while living with HIV

How to get rid of stigma and thrive while living with HIV

Eusebius McKaiser chats to brothers Thula and Ntokozo Mkhize on how people can accept and cope with the virus.

10 anger types that escalate to gender-based violence in relationships

10 anger types that escalate to gender-based violence in relationships

Clinical sexologist Dr Eve says words stick and do not heal as fast as wounds.

'Since Ramaphosa became president Motsepe has become bizarre,' says caller

'Since Ramaphosa became president Motsepe has become bizarre,' says caller

Callers react to businessman Patrice Motsepe telling Donald Trump that Africa loves the US president.

Looking at art as one of the languages in which to talk about mental illness

Looking at art as one of the languages in which to talk about mental illness

Eusebius McKaiser and pundits reflect on how people can manage their mental health challenges by creating artworks.

Caller shares horrific story of how his twin babies died at Mamelodi Hospital

Caller shares horrific story of how his twin babies died at Mamelodi Hospital

Mike says immediately after the first baby died, a private undertaker called him offering his services to bury the child.

Parktown Boys' High pupil: The headmaster emphasised we must not speak to anyone

Parktown Boys' High pupil: The headmaster emphasised we must not speak to anyone

A grade 8 learner recalls in graphic detail how he and other boys watched Enoch Mpianzi being swept away by water.

Popular articles
Fitness was a career that chose me - 'Queen Fitnass'

Fitness was a career that chose me - 'Queen Fitnass'

Mapule Ndhlovu opens up about her life journey and how exercise changed not only her body, but her mindset for the better.

[WATCH] Tshwane bystander 'poses' for the camera, has social media laughing

[WATCH] Tshwane bystander 'poses' for the camera, has social media laughing

Khabazela shares tweets and Facebook posts that have gone viral.