NEWS & ANALYSIS

Solidarity request investigation into Gupta-Denel scandal

Public Protector must probe controversial partnership, says union

Solidarity requests Public Protector to probe Gupta-Denel scandal

10 February 2016

In a letter to Public Protector (PP) adv. Thuli Madonsela, trade union Solidarity today requested the Public Protector to probe the controversial partnership between Denel and the Gupta family. Solidarity, the largest trade union within Denel, contends the transaction holds many negative consequences for the future of the company and that of its employees.

According to recent media reports, Denel and the Gupta family formed a joint venture company, Denel Asia, by which the Guptas would be able to cash in on Denel product sales in the East.

Solidarity’s Deputy General Secretary for the professional industry, Johan Botha, says there are numerous question marks over the legitimacy of the transaction, especially given the Gupta family’s strong ties with President Jacob Zuma, as well as the fact that the transaction was concluded at a time when Denel’s chief executive and chief financial officer both had been suspended.

“As a trade union we are concerned about the impact this controversial partnership will have on Denel’s reputation, which has lately been tarnished by a number of negative events. We are furthermore concerned about its impact on this year’s salary negotiations and that our members will be adversely affected by it,” Botha says.

In the letter to the Public Protector Solidarity requests that she launces an investigation into this transaction and those who are involved in it in terms of section 6(5) of the Public Protector Act, No 23 of 1994.

Issued by Johan Botha, Deputy General Secretary, Professional Industry, Solidarity, 10 February 2016