Two senior executives found themselves in the Pretoria Specialised Commercial Crime Court on Friday, grappling with serious corruption allegations related to the controversial Denel Asia joint venture.
Lungisani Daniel Mantsha, the former chairperson of the Denel board, and Zwelakhe Nhlanganiso Ntshepe, the ex-group CEO, stand accused of violating regulations and misrepresenting crucial facts to ministers regarding the legitimacy of their dealings.
It's alleged that they asserted the joint venture had not been formalised while it had already been signed.
Henry Mamothame, spokesperson for the Investigating Directorate against Corruption (IDAC), revealed that the joint venture in question involves VR Laser South Africa (VRLSA) and Denel Asia, a private entity registered in Hong Kong. Denel holds a majority 51% share in Denel Asia, while VRLSA commands 49%.
According to Mamothame, Mantsha and Ntshepe's alleged misconduct extended over a four-year period from March 2014 to March 2018. During this timeframe, they allegedly ignored a directive from the Minister of Finance that mandated all transactions involving Denel receive approval from both the Minister himself and the Ministry of Public Enterprises. This directive followed the issuance of a substantial R1.8 billion guarantee from the finance minister to Denel.
Adding to the gravity of the situation, both former officials are also accused of receiving illicit benefits related to the facilitation of the contentious deal. Furthermore, it emerged that confidential information pertaining to Denel’s board of directors was improperly disclosed between July 2014 and May 2016.
Compounding their alleged misdeeds, Mantsha and Ntshepe purportedly violated the Public Finance Management Act by authorising bursaries without the proper authority.
The duo was released on R30,000 bail, but with stringent conditions, they were ordered to surrender their passports and are prohibited from applying for new ones. Should they require international travel, they are expected to bring an application for a modification of their bail conditions.
Get your news on the go, click here to join the IOL News WhatsApp channel.