Khaya Magaxa, Parliamentary Portfolio Committee on Public Enterprises chair, welcomed progress made by Denel with its turnaround strategy.
In a statement issued post a presentation by Denel interim Chief Executive Michael Kgobe, he noted “with appreciation” the “positive report” including “progress on what the committee has been suggesting”.
This includes the State-owned defence and technology group selling some properties it owns to generate income. Other non-strategic properties will be put up for rental.
With the capabilities and the infrastructure the company has, it needs diversification to further explore and improve, a Parliamentary Communication Services statement has it. “The company needs to offer strategic assistance like it did during the [COVID-19] pandemic with the production of ventilators.”
On an oversight trip committee members saw “first-hand capabilities the company has”. Magaxa noted Denel has good infrastructure in place, which can assist with production of police vehicles and ambulances.
He is quoted as saying the SA National Defence Force (SANDF) should utilise Denel for procurement of ammunition instead of relying on external assistance. “Our state-owned entities are not assisting in supporting each other as they are purchasing ammunition elsewhere.”
Addressing Denel revenue and ensuring an increase in cash injection, Kgobe informed the committee the entity is making progress regarding export opportunities via partnerships Saudi Arabia, Turkey and the United Arab Emirates (UAE).