THE former board of Denel has struck back at
Denel chairman Daniel Mantsha, who this week accused former CEO
Saloojee of a host of wrongdoings in front of Parliament’s standing
committee on public enterprises.
The present board dismissed Mr Saloojee last month without a disciplinary hearing or proving any charges against him and paid him out for the remainder of his contract. The board is also in dispute with Finance minister Pravin Gordhan over its joint venture, Denel Asia, formed with Gupta-associated company VR Laser Asia.
Former board chairman Martie Janse van Rensburg said that Mr Mantsha’s claims to the committee were thoroughly misleading.
On Tuesday, Mr Mantsha claimed that Mr Saloojee "initiated" the decision to form Denel Asia and had made a submission to the board on in this regard.
Ms Janse van Rensburg said she was aware that it was Mr Mantsha himself who had first raised the idea in a meeting with Mr Salojee before the first board meeting. Mr Saloojee had then made a submission recommending a thorough analysis to consider the viability of such a transaction. Two weeks later he was suspended.
Ms Janse van Rensburg, writing on behalf of all previous board members except Johannes Motseke, who is on the new board, also refuted Mr Mantsha’s claims to the committee that Mr Saloojee had been involved in "reckless borrowing" and had jeopardised the liquidity position of the company.
In the committee, Mr Mantsha said that Saloojee had changed the terms of a R450m loan from Nedbank from five years to five months, triggering a liquidity crisis. The loan was for the acquisition of BAE Land Systems.
Ms van Rensburg says that the loan had been structured as a bridge loan, in order to accommodate the cash flows from a minority equity partner, which was to be brought into the deal. It was always the intention — and was known to the lender — that when these came available the loan would be restructured.
However, the new board called off the minority transaction, she said, for reasons that were not clear.
"The cancellation of the minority equity partnership impacted negatively on the net funding position and profitability of Denel. The business case and structure the board considered was sound and would have created value for Denel," she said.
"One would ordinarily not want to comment on these matters but we are forced to by comments casting aspersions on the previous board. We are disappointed by the current developments and therefore advocate a speedy resolution in the interests of Denel and the country," she said.
by Carol Paton,
 |
| Group CEO Riaz Saloojee, right, announces Denel's annual results in August 2014. Picture: PUXLEY MAKGATHO |
The present board dismissed Mr Saloojee last month without a disciplinary hearing or proving any charges against him and paid him out for the remainder of his contract. The board is also in dispute with Finance minister Pravin Gordhan over its joint venture, Denel Asia, formed with Gupta-associated company VR Laser Asia.
Former board chairman Martie Janse van Rensburg said that Mr Mantsha’s claims to the committee were thoroughly misleading.
On Tuesday, Mr Mantsha claimed that Mr Saloojee "initiated" the decision to form Denel Asia and had made a submission to the board on in this regard.
Ms Janse van Rensburg said she was aware that it was Mr Mantsha himself who had first raised the idea in a meeting with Mr Salojee before the first board meeting. Mr Saloojee had then made a submission recommending a thorough analysis to consider the viability of such a transaction. Two weeks later he was suspended.
Ms Janse van Rensburg, writing on behalf of all previous board members except Johannes Motseke, who is on the new board, also refuted Mr Mantsha’s claims to the committee that Mr Saloojee had been involved in "reckless borrowing" and had jeopardised the liquidity position of the company.
In the committee, Mr Mantsha said that Saloojee had changed the terms of a R450m loan from Nedbank from five years to five months, triggering a liquidity crisis. The loan was for the acquisition of BAE Land Systems.
Ms van Rensburg says that the loan had been structured as a bridge loan, in order to accommodate the cash flows from a minority equity partner, which was to be brought into the deal. It was always the intention — and was known to the lender — that when these came available the loan would be restructured.
However, the new board called off the minority transaction, she said, for reasons that were not clear.
"The cancellation of the minority equity partnership impacted negatively on the net funding position and profitability of Denel. The business case and structure the board considered was sound and would have created value for Denel," she said.
"One would ordinarily not want to comment on these matters but we are forced to by comments casting aspersions on the previous board. We are disappointed by the current developments and therefore advocate a speedy resolution in the interests of Denel and the country," she said.
by Carol Paton,
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