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Denel confirms receiving R100 milion from Chad Republic

SABC News Talib Sadik 1 - Denel confirms receiving R100 milion from Chad Republic

State arms company Denel has confirmed receiving a R100-million deposit from the Republic of Chad for the purchase of 40 military Casspirs – vehicles used for the transport of troops.

The total cost of the contract, which was signed in 2017, was R230-million.

Denel, however, never delivered the vehicles due to internal squabbles.

Chad has since cancelled the contract and is demanding their deposit back.

The cash-strapped arms manufacturer says it’s investigating the matter and has submitted a statement to police to deal with the implicated individuals.

The Chairperson of Denel’s Audit Committee, Talib Sadik, says the matter relates to the mismanagement of the state-owned company.

“We were appointed as the new Board in April 2018. This contract was brought to our attention, because the company had not achieved the contractual milestones. The contract was signed by the GCEO and the GCFO without any authority. They had stripped the company off all of its responsibilities. The negotiations were led and concluded by the GCEO and GCFO. With the monies coming in, the contract was an onerous one – meaning it was loss making. We have launched a statement with SAPS and the HAWKS, and we are pursuing civil action against them.”


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