Denel to take legal steps "soon" to recover money from former execs

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State-owned arms manufacturer Denel says it will "soon" take legal action against former executives to recover money as a result of alleged fraud and misappropriation of funds. 

In a statement on Wednesday its CEO Danie du Toit said he had already received several reports "concerning improper transactions, irregular appointments and potential fraud while other investigations are in advanced stages".

The reports have been referred to independent legal firms to review and to assist Denel with the implementation of the recommendations.

Denel's statement comes as trade union Solidarity hosts a press briefing on its plans to take legal action against the struggling arms manufacturer to compel it to recover funds based on a "dossier" that the union says it submitted to Denel.

Du Toit said Denel was aware of the contents of the dossier.

"We started with thorough investigations more than six months ago, shortly after the appointment of the new Denel Board. We have kept stakeholders, including Solidarity, informed about the progress we are making as recently as this week. There is no need to take Denel to court to force it to investigate allegations of irregularities,” said Du Toit. 

Earlier in the weak Solidarity said the aim of its proposed legal action was to "protect the money of Denel employees as well as the taxpayer's money".

"We dare not be silent about the plundering of tax money any longer," Solidarity said.

The union's briefing on Wednesday is expected to provide an update on its proposed court action.

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