Ex Denel CEO brought Gupta’s VR Laser into the fold, Zondo hears

Former Denel chairperson Daniel Mantsha has pinned the blame for the relationship between the state-owned arms manufacturing company and Gupta-owned company VR Laser Asia on former CEO Riaz Saloojee.

Appearing at the Commission of Inquiry into Allegations of State Capture on Friday, Mantsha denied allegations by Saloojee that his dismissal from Denel was based on sinister motives and that the former CEO was seen as an obstruction to deals the arms manufacturer aimed to pursue with the Gupta brothers and their associates.

“Mr Saloojee had no problem with Mr [Salim] Essa because Mr Saloojee recommended that Mr Essa buy VR Laser. This is the information I presented to the commission. Mr Saloojee was working with Mr Essa,” Mantsha told Deputy Chief Justice Raymond Zondo.

“The reports tabled before this commission did detail that the investigation was based on the entry of VR Laser to Denel and that it was not properly done. So then action was taken on the executives that were involved,” he told the commission.

ALSO READ: Denel Asia’s joint venture with VR Laser did not make commercial sense

“He [Saloojee] was not an obstacle to VR Laser because he brought VR Laser to Denel. To then suggest that the charges had something do to with Denel Asia… is nonsense.”

Executives fired

This is after evidence leader Paul Kennedy read a letter signed by Mantsha which said Denel would not renew Salojee’s contract and he had been suspended pending disciplinary processes.

In September 2015, Saloojee, CFO Fikile Mhlontlo and company secretary Elizabeth Africa were dismissed from Denel by the arm manufacturer’s board members, citing improper or unlawful conduct in the awarding of a contract.

READ MORE: Lynne Brown ‘appointed Denel board with no skills, qualifications’

During her testimony last October, former Denel board member Nonyameko Mandindi told the commission the executives were fired following a meeting meant to discuss the details of Land Systems South Africa’s (LSSA’s) contract with the arms manufacturer.

However, but the matter was not even brought up by the board members.

Denel Asia deal

In January 2016, Denel Asia announced it wanted to partner with VR Laser to penetrate the Asia-Pacific markets which had seen year-on-year increases in spending in excess of 20%, making it one of the top markets for defence equipment in the world.

VR Laser Asia, which was alleged to be at the centre of state capture, was bought by the Guptas through associate and businessman Salim Essa.

The Gupta emails leaked to the media showed how the Guptas acted as middlemen and took a large chunk of the Denel Asia deal while allegedly trying to sell Denel’s intellectual property to India.

Watch the proceedings live below, courtesy of the SABC:

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