NEWS

Denel Wants The Courts To Approve Its Venture With Gupta-Linked VR Laser

27/03/2017 07:06 SAST | Updated 27/03/2017 07:16 SAST
Lulama Zenzile/Foto24/Gallo Images/Getty Images

In yet another potential conflict between the Treasury, a state-owned enterprise and the Guptas, state-owned weapons manufacturer Denel has approached the courts, seeking the green light over a joint venture formed with a Gupta-linked company.

According to Business Day on Monday, the proposed joint venture with VR Laser Asia, owned by Gupta associate Salim Essa needs Treasury's approval to move forward. Denel reportedly told the high court in Pretoria it had done everything required in terms of the Public Finance Management Act.

If approved, the joint venture will reportedly be called Denel Asia. Business day reported that Denel formally asked for approval in December 2015. When it received no response, Denel registered the company in Hong Kong.

Public Enterprises minister, Lynne Brown reportedly approved the joint venture but said it could not trade until Treasury had given the go ahead.

In court papers cited by Business Day, Denel's chief executive, Zwelakhe Ntshepe said, "This matter remains unresolved and continues to unfairly cast doubt on Denel's reputation and governance regime."

Treasury told Business Day it had not yet been served with papers.