The Denel Asia deal did not make “commercial sense” for the state-owned arms manufacturer, heard the commission of inquiry into state capture on Tuesday.
She told the commission that there was a lot of “market intelligence homework” which had to be done before establishing such a subsidiary in another country. The tons of “homework” needed to be done would result in the board building an “investable case” and “a banking case that makes business sense” before deciding to continue with establishing the subsidiary, Janse van Rensburg said.
Brown appointed Mantsha despite that fact he was struck off the roll as an attorney in 2007 and only re-admitted in 2011. The government, she explained, would seek to ensure that its country’s local procurement requirements are satisfied. “And if the transaction was structured in a way that Denel would own 51% of Denel Asia, but that is only a holding company, if you then structure a further company underneath that in the country which you are doing business with … eventually the amount of money that will flow through to Denel would be quite a smaller component,” she told the commission.
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Denel joint venture with company owned by Gupta ally 'made no sense', state capture commission toldFormer Denel board chair Martie Janse van Rensburg says the joint venture between the state armaments company and VR Laser, a company owned by an associate of the Gupta family, did not 'make commercial sense' Again it was under the watch of an Government official.
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