South Africa

News24.com | State capture: 'Glaring' lack of compliance at limping Denel, inquiry hears

Arms manufacturer Denel has been grappling with governance and financial issues.

Arms manufacturer Denel has been grappling with governance and financial issues.

'Very glaring'

Denel has been on a downward spiral in the past three years and has been crippled by financial issues, poor governance and allegations of involvement in state capture. Just this month, it approached the Department of Defence for a R683-million bailout. 

The chairperson explained that one of the challenges at Denel relate to its lack of information management, like keeping up-to-date minutes that makes it impossible to learn from the past.

She said she had raised her issues around the expectation that the board would assess and perhaps make a decision on whether the executives should be suspended, but never got a response to her letters and emails.