in Business & Finance

Denel fraud investigations reach advanced stages

Posted 31 July 2019 · Add Comment

South African based Denel has initiated several forensic investigations into alleged fraud and misappropriation of funds conducted by its previous management, and this will soon result in legal actions to recover losses.

 

Danie du Toit the Group chief executive officer of Denel said he has already received several reports concerning improper transactions, irregular appointments and potential fraud while other investigations are in advanced stages. 

The reports were referred to independent legal firms to review the evidence and to assist Denel with the implementation of the recommendations.

Du Toit said: “ Denel is aware of the contents of a dossier on alleged corruption compiled by Solidarity and of the union’s intention to institute legal steps to investigate the issues.

“We started with thorough investigations more than six months ago, shortly after the appointment of the new Denel Board. We have kept stakeholders, including Solidarity, informed about the progress we are making as recently as this week. There is no need to take Denel to court to force it to investigate allegations of irregularities.”

Flowing from the reports on the investigations Denel has already taken a number of corrective steps, including:

·       Civil action against some of former Denel executives to recover monies lost through the irregular awarding of pilot bursaries;

·       A statement will soon be submitted to the SAPS to lay complaints against former executives identified in the forensic reports;

·       An application will soon be launched in the High Court to review the contracts concluded between Denel and VR Laser;

·       Disciplinary action will be taken against Denel employees implicated in the reports, pending the legal recommendations;

·       Civil claims will be instituted against former Denel executives to recover losses once the quantum of the loses has been determined.

In addition, the President has already published a proclamation to enable the Special Investigative Unit to conduct probes into alleged maladministration and unlawful appropriation of expenditure. It is highly likely that this will be followed by civil actions to recover the money.

“It is completely untrue to allege that Denel has not taken actions to investigate transgressions and recover the money,” said Du Toit. “We are in an advanced stage of investigations and there is no need to compel us to act through court actions.”

He added: “We are encouraged by the positive sentiments towards Denel expressed by Government and looking forward to possible decisions on the recapitalisation of the company. Denel remains a valuable national asset and still has the potential to play a vital role in the country’s economic future and its transition towards the 4th industrial revolution.”

* required field

Post a comment

Other Stories
Advertisement
Latest News

ICAO and CAAi launch lockdown recovery course for aviation professionals

In accordance with the recommendations of the ICAO Council Aviation Recovery Taskforce, together ICAO Global Aviation Training (GAT) and CAA International (CAAi), the aviation training arm of the UK Civil Aviation Authority, have

Ethiopia's Strong Roots selects Eutelsat satellite for DTH platform

Eutelsat Communications and Strong Roots Ethiopia Broadcasting Service plc have concluded a Master Service Agreement for a Ku capacity on a 36 MHz transponder on Eutelsat’s EUTELSAT 8 West B satellite.

Tons of problems for the SAAF

The South African Air Force has (quietly) celebrated its centenary against backdrop of worries that it is in “dire straits”.

IATA: Albakri in new leadership succession

The International Air Transport Association (IATA) announced that Muhammad Albakri, IATA’s regional vice president for Africa and the Middle East (AME), will be appointed senior vice president for customer, financial and digital

Air Mauritius doubles daily flights to Rodrigues

Air Mauritius, following their successful resumption of commercial flights on the Rodrigues route on the 1st of July, have from the beginning of this month, added a second daily flight to the Island.

Star Alliance enhances Travel Information Hub

Building upon the successful launch of its Travel Information Hub at the end of June, global airline network Star Alliance - which includes Ethiopan Airlines, South African Airways and EgyptAir - has unveiled a series of useful upgrades

AMAC SK2907290121
See us at