Denel joint venture with company owned by Gupta ally 'made no sense', state capture commission told

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StateCaptureInquiry 'The outgoing board did not consider the establishment of Denel Asia. In my opinion if you would like to establish such a type of subsidiary in another country, there's a lot of market intelligence homework that needs to be done.'

Former Denel board chair Martie Janse van Rensburg, speaking at the state capture inquiry on Tuesday, says the joint venture with VR Laser did not"make commercial sense".Former 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".

Testifying before the state capture inquiry on Tuesday, Janse van Rensburg - who chaired the board between 2011 and 2015 - said her team did not consider the joint venture. "The outgoing board did not consider the establishment of Denel Asia. In my opinion if you would like to establish such a type of subsidiary in another country, there's a lot of market intelligence homework that needs to be done," she said.

In January 2016, the formation of Denel Asia was announced. It was described as a Hong Kong-based joint venture between Denel, which would control a 51% holding of the company, and VR Laser, which belonged to long-time Gupta ally Salim Essa. This came about six months after a new board was appointed at Denel by former public enterprises minister Lynne Brown.

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