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Denel execs desperate to approve armoured vehicle deal with Gupta-linked company, inquiry hears

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Arms manufacturer, Denel cannot pay May salaries. Phooto: Reuters
Arms manufacturer, Denel cannot pay May salaries. Phooto: Reuters

The state capture commission of inquiry has heard that Gupta-linked VR Laser Services managed to secure a lucrative deal worth more than R200 million at Denel, despite concerns the company's supply chain executives raised.

On Tuesday, former group supply chain management executive at Denel, Dennis Mlambo, testified that there seemed to be "desperation" and "anxiety" from Denel Land Systems (DLS) executive committee members to quickly approve its recommendation for VR Laser Services to be appointed to supply the company with 183 platform hulls (combat vehicles) for Project Hoefyster in 2014.

This, despite the fact that LMT Holdings, an armoured vehicle designer and manufacturer in which Denel held a 51% shareholding, quoted R100 million less than VR Laser and had previous experience supplying the hulls.

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