Denel board issues media statement

990

Denel executives have met with National Treasury officials twice, addressing the misunderstanding relating to the establishment of Denel Asia, the company says.

The Denel board has noted the media statements attributed to minister Pravin Gordhan, and wishes to categorically deny that the Denel board or its executives are arrogant and belligerent.

The minister‘s accusations are unsubstantiated, baseless and unfounded. Denel executives have in recent weeks met with National Treasury officials twice, addressing the misunderstanding relating to the establishment of Denel Asia. During the two meetings, among other things, it was agreed that neither National Treasury nor Denel would unilaterally make public statements on these matters until such time discussions are concluded.

The Denel board is taken aback by the minister’s statements, which are a clear violation of the undertakings given by National Treasury and also a flagrant violation of chapter 3 of the Constitution. Denel appeals to the minister to refrain from making such comments and allow the engagement between Denel and National Treasury to reach its finality.



The Denel board will continue to observe the highest standards of governance, and will, above all, ensure applicable legislation like the PFMA is complied with in full, not only its letter but also its spirit. The establishment of Denel Asia was done in compliance with section 51(1) (g) and section 54 (2) and (3) of the PFMA.