Business 21.2.2018 04:04 pm

Treasury eyes Denel for next shake-up

Finance Minister Malusi Gigaba says a review of state-owned enterprise Denel's board is on the cards.

Finance Minister Malusi Gigaba says a review of state-owned enterprise Denel's board is on the cards.

The board of the state-owned enterprise is going to be reviewed, following Denel defying orders by National Treasury over a Gupta-linked company.

Denel will be the next state-owned enterprise to see a shake-up of its board, Finance Minister Malusi Gigaba said today before tabling the 2018 national budget.

“The Denel board is next in line for review,” Gigaba told a media briefing.
 
He said South African Express would also see changes given government’s decision to “consolidate our aviation assets”.
 
In January, respected businessman Jabu Mabuza was appointed as chairman of the board of Eskom, after a parliamentary inquiry heard testimony suggesting the board members of the power utility had for years been complicit in awarding irregular contracts to the Gupta family.
The brothers, who are now subject to a police investigation, are believed to have used their closeness to former president Jacob Zuma to siphon billions of rands off the country’s parastatals.
 
Denel pursued a joint venture with VR Laser Asia, a company established by the Guptas’s close business associate Salim Essa, in defiance of orders from National Treasury.
 
The deal was eventually blocked by the finance ministry.

 

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