DENEL has asked Finance Minister Pravin Gordhan for permission for it to be exempt from laws and regulations so that it can be excused for 21 potential cases of irregular expenditure.Denel cited its subsidiary, Denel Vehicle Systems, which the arms manufacturer said needed to get internal controls in place after the R855m acquisition of BAE Land Systems in April 2015.The cases of possible irregular expenditure are for not evaluating valid clearance certificates before issuing bids and deviations from procurement processes, which were not approved adequately. Supply chain-management processes were not adhered to.Denel’s 2015-16 annual report noted that with the acquisition of BAE Land Systems, Denel Vehicle Systems became a schedule two entity under the Public Finance Management Act and was required to comply with this act, the Public Procurement Policy Framework Act and Treasury regulations in relation to procurement and contract management from the date of acquisition.Denel spokesw...
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