Johannesburg - The Department of Public Enterprises has noted with “utter disdain” the attempts by suspended Denel Dynamics division CEO Sello Ntsihlele to obfuscate and drag Minister Pravin Gordhan and the department into his ongoing internal disciplinary process.
According to a statement from the department, this was another example of an employee of a state-owned enterprise (SOE) that was gutted by corruption and state capture who, when facing disciplinary action, made unfounded allegations against others.
“This practice is disingenuous in the extreme. The disciplinary process is a prerogative of the Denel board, which must do its work and see it to its logical conclusion without interference or any other attempt to deflect attention from the real issues that pertain to stabilising Denel," said the statement.
The department said any allegations by Ntsihlele against Gordhan and the department in this matter were rejected with the contempt they deserved.
“The disciplinary process will continue as determined by the board, consistent with the governance imperatives of Denel,” added the statement.
According to the statement, Denel was considered a strategic national security and industrial asset, which had led the department to implement a series of actions to strengthen the SOE, improve its strategic focus, and ensure that it had the human resource capabilities to implement its turnaround plan.
“In 2022/23, Denel submitted a turnaround plan with a realistic business case and strategic objectives. In his October 2022 Medium-Term Budget Policy Statement, the Minister of Finance announced a recapitalisation of R3.4 billion for Denel to support the restoration of Denel’s strategic and sovereign capabilities," added the statement.
The department said the recapitalisation allowed Denel to fully implement its turnaround plan to ensure support for the Department of Defence and specifically the SANDF in order to secure SA’s strategic defence and supply of defence capabilities.
"The board has also initiated the process to appoint the Group CEO and CFO, which have been vacant for over two years. Denel’s order book is robust, at R18.37 billion for 2023/24, while planned total sales are projected to be R2.08 billion, compared with R1.08 billion in the 2022/23 financial year," said the department.
The Star