Denel has been caught in a lie over the formation of its Hong Kong joint venture, Denel Asia, with Gupta associate Salim Essa, documents submitted to the public protector as part of the probe into state capture show. Denel, which formed the joint venture without the permission of Finance Minister Pravin Gordhan, itself a contravention of the Public Finance Management Act, claimed at the time that the rationale for choosing VR Laser Asia as a partner was the strong relationship it had with its SA-based company, VR Laser. President Jacob Zuma has taken legal action to prevent the release of the report into whether the Gupta family influenced the hiring of ministers, and whether they were given preferential treatment in state contracts. The sole shareholder of VR Laser Asia, Essa, has denied in a letter from his attorney, attached to the documents, that there was a link between the two companies. His attorney, Charles van Staden of Hogan Lovells, states that Essa established VR Laser A...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.