Big contracts for Denel landward defence, but suppliers maintain they are not being paid
According to one supplier, his company’s account with the State-owned defence industry conglomerate is currently 90 days in arrears.
“We also have no commitment as to when the outstanding amount of more than R10 million will be paid,” the disgruntled contractor said, adding there are “at least 20 other suppliers to Denel Dynamics” who find themselves in similar positions.
Last month Public Enterprises Minister Lynne Brown said, in reply to a Parliamentary question, that the acquisition of BAE Systems Land Systems South Africa had not exhausted Denel’s cash reserves.
Natasha Mazzone, opposition Democratic Alliance (DA) party shadow public enterprises minister, who first asked questions about Denel’s liquidity, said: “It appears the extent of the problem is greater than what has been reported and I have written to Minister Brown requesting her to urgently appear before the Parliamentary Public Enterprises Committee to respond to the Denel crisis”.
READ MOREDenel Vehicle Systems wins R900 million vehicle contract with UAE
Denel at Dubai airshow
Minister maintains there is no problem with Denel cash reserves
PMP proceeding with plant renewal
Among the other 20 companies who still await payment for goods and services are some that have incurred penalties on export contracts.
The newest addition to the Denel stable, now renamed Denel Vehicle Systems (DVS), this week confirmed a R900 million plus contract with NIMR in the United Arab Emirates for the development and supply of N35 (formerly RG35) mine protected vehicles.
The contract, according to a Denel statement, is one of the largest received by the now DVS and previously BAE Land Systems Land Systems South Africa in recent years and will provide work for two of the company’s major divisions for the next 24 months.
“It is one of several contracts awarded to DVS since it became part of Denel earlier this year and further confirms Denel’s leadership role in landward mobility and mine protected vehicles,” Zwelakhe Ntshepe, Denel Group Executive Business Development, said.
Other contracts Denel landward defence has recently concluded include 24 RG-31 mobile mortar platform (MMP) vehicles, assembly of driveline components for NIMR, maintenance and supply of spares for combat and military support vehicles and for components in the new Transnet electric locomotives.
Top stories this week
- Navy dead not included in 2017 National Orders
- Sandu members back at work seven years after Union Buildings protest
- SA Legion provides headstone for sailor’s Durban grave
- Nigerian Ports Authority seeks nine patrol boats to enhance port and harbour security
- Nigerian Air Force inducts new Mi-35 attack helicopters
- SA-Pakistan MoU on defence: What the two countries could offer each other
- Gupta’s armoured personnel carrier identified
- Denel going back to court for legal ruling on Denel Asia joint venture
- SA hoping to sell weapons to Iran
- Luftwaffe doing extensive testing of its Taurus missiles at Denel OTR
- Denel partnering with TKMS on upgrading SA Navy’s frigates and submarines
- Denel facing liquidity challenges
- Russian Helicopters expanding support in the Near East and Africa
- Simon’s Town dockyard still managed by Armscor
- PMP exporting non-military ammunition to Russia
SA landmine detection pioneer in big US defence contract
by DCD Protected Mobility, 21 April 2017
Boksburg-based DCD Protected Mobility will provide more than 20 of its Husky 2G landmine detection vehicles to the US Department of Defence.
Reutech's RSR 904 radar system used in anti-poaching initiatives in Kruger Park
by Reutech, 21 April 2017
The innovative Kruger Park surveillance technology, the Meerkat, stops poachers in their tracks.
Saab signs support contract extension with British Army
by Saab, 13 April 2017
The deal with the UK's Ministry of Defence includes the provision of support and services to the Direct Fire Weapon Effects Simulator capability.