Denel bail-out R8bn to date: DA

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State arsenal Denel has received Treasury assistance of R8.82 billion to date and not R3.5 billion as stated by the company, says the parliamentary opposition Democratic Alliance (DA) party.

 

DA member of the select committee on finance, Tim Harris said the figures are based on a parliamentary reply from the National Treasury.

 

 

Harris adds state owned enterprises (SOEs) have collectively cost taxpayers R243.25 billion in the last four years – enough money to build at least four large coal-fired power stations, he says. Other than Denel, the funding breaks down as:

  • Eskom: R 188.67-billion

  • Denel: R8.82-billion

  • Land Bank: R 6.7-billion

  • SAA: R5.2-billion

  • Pebble Bed Modular Reactor: R4.46-billion

  • SABC: R2.23-billion

  • SA Post Office: R1.54-billion

  • Sentech: R953-million

Harris noted that Denel has disputed the R8.8-billion figure, calling it a “factual inaccuracy”. He said Denel business development and corporate affairs executive director Zwelakhe Ntshepe this week said the “state’s investment in the organisation’s turnaround strategy has [only] amounted to R3 500 million (R3.5 billion) to date”.

 

Harris says the DA “can only advise that he speaks to the Treasury at the earliest possible opportunity. … “If it is a factual inaccuracy, then it is the Treasury’s, not ours.”

 

The MP adds the Treasury defined assistance from the government to state owned entities as including guarantees, loans, transfers and once-off indemnities.

 

For Denel Treasury stated as follows:

  • R1.515-billion in guarantees (2005/06)

  • R2-billion in unconditional transfers (2005/06)

  • R1.6-billion unconditional indemnity (2006/07)

  • R567-million in unconditional transfers (2006/07)

  • R933-million in unconditional transfers (2007/08)

  • R221-million in Denel/SAAB claims (2007/08)

  • R1.72-billion in guarantees (2008/09)

  • R260-million in Denel/SAAB claims (2008/09)

 

“In total, this amounts to R8.816-billion of financial support, over four years,” Harris said.