The Democratic Alliance (DA) claims that the Department of Public Enterprises (DPE) “tried to sneak Denel’s financials under the radar.”
“The Department of Public Enterprises has tried to sneak Denel’s financials under the radar with a Parliamentary Announcements, Tabling and Committee Report (ATC) notice buried on page 70 of ATC 188,” claimed a press release issued by Natasha Mazzone (DA MP) on, Friday, 14 December 2018.
The press release also pointed out that the Denel website is currently down and claimed that the ANC did not make reference to any “financials” on the ATC’s content page. This, according to the Mazzone, is an indication that the DPE is keeping the state-owned company’s financial information hidden for the purpose of disguising the fact that Denel is in a “financial tailspin.”
The DA added that “According to the independent auditor, Denel and its subsidiaries did not include any fruitless and wasteful expenditure in the notes to the financial statements as required by section 55(2)(b)(i) of the Public Finance Management Act 1 of 1999 (PFMA).”
In an attempt to force the release of Denel’s financials, the DA took legal action against the state-owned enterprise in October 2018 “for failure to submit the financials within five months.”
Citing losses and irregular expenditure well into the billions, the Democratic Alliance called for the “partial or full privatisation” of the conglomerate.
The DA concluded that the matter needs to be dealt with swiftly to avoid “another bailout” which the party says “is one Christmas present South Africans cannot afford.”