Unapproved Denel-Gupta merger undermines Gordhan and violates PFMA
24 August 2016
The announcement by Denel CFO that the merger with Gupta-linked VR Laser will continue is another case of the Minister of Finance, Pravin Gordhan, being undermined by President Zuma. This is detrimental to our economy and further entrenches Jacob Zuma’s cronyism at the highest echelons of government.
This cannot be allowed to continue. Minister Gordhan must reclaim his Executive authority by intervening in this illicit merger and halt any business that is to be conducted with the Gupta-linked VR laser deal until such stage as there is tangible evidence that this merger is in fact PFMA complaint.
Section 54(2) of the PFMA states that:
Before a public entity concludes any of the following transactions, the accounting authority for the public entity must promptly and in writing inform the relevant treasury of the transaction and submit relevant particulars of the transaction to its executive authority for approval of the transaction: