Question NW1260 to the Minister of Public Enterprises:

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26 April 2023 - NW1260

Profile picture: Essack, Mr F

Essack, Mr F to ask the Minister of Public Enterprises:

Whether, with reference to concerns raised by the Joint Standing Committee on Defence about the ability of Denel to effectively support the sovereign and strategic capabilities of the SA National Defence Force (SANDF), Denel has failed to honour any contractual agreements with the SANDF over the past five years on the supply of defence equipment; if not, what is the position in this regard; if so, what (a) is the breakdown of Denel’s current order book on the supply of outstanding SANDF defence equipment and (b) are the further relevant details in this regard? NW1401E

Reply:

According to the information received from Denel

Please note that Armscor as the acquisition agency for the Department of Defence (DOD) will be in a position to provide the required information. Denel is not authorised to provide this information.

The contractual relations between Denel and Armscor is managed, among others, by commercial agreements which contain confidential information provisions. These provisions preclude Denel from disclosing such information. Therefore, Armscor as the acquisition agency for the Department of Defence (DOD) will be in a position to provide the required information. As per the existing commercial agreements, Denel is not authorised to provide this information.

However, we must emphasize that Denel is positioning itself to execute orders from and commitments to, both the SANDF and other customers. We must also point out that recovering from the damage caused by State Capture and the loss of skills is a challenging journey. Nevertheless, Denel is considered an important asset by government.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date

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