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The Portfolio Committee on Public Enterprises heard that Denel will expedite the sale of non-core assets for cash injection to be ploughed into the business as part of the entity’s turnaround plan. The entity appeared before the committee to brief it on progress regarding the implementation of its turnaround strategy.
 
The arms deal manufacturer said it will be reducing its footprint on some of the properties it owns. Some of the properties will be put up for rental where deemed non-strategic, Denel will sell its properties to generate income for the company.
 
In welcoming the briefing, the Chairperson of the committee, Mr Khaya Magaxa, said there is a lot of progress in what the committee has been suggesting to the entity and that is a positive report that deserves appreciation.
 
Mr Magaxa said: “With the capabilities and the infrastructure that the company has, it needs diversification to further explore and improve.  The company needs to offer strategic assistance like it did in the country during the pandemic with the production of ventilators.”
 
In an oversight trip that the committee undertook, members of the committee witnessed first-hand the capabilities that the company has. According to Mr Magaxa Denel has good infrastructure in place, which can assist the country with the production of police vehicles and ambulances.
 
He said the South African National Defence Force should utilize Denel on procurement of ammunition instead of relying on external assistance. He added: “Our state-owned entities are not assisting in supporting each other as they are purchasing ammunition somewhere else.”
 
Denel’s Interim Group Chief Executive Officer, Mr Mike Kgobe, said  armoured vehicles in the South African Army had been produced by the company and it also provided maintenance  support for the South African Air Force  and the South African Navy.
 
In addressing its revenue and ensuring that there is an increase in cash injection, Mr Kgobe informed the committee that the entity is making significant progress regarding export opportunities.  

Issued by the Parliamentary Communication Services on behalf of the Chairperson of the Portfolio Committee on Public Enterprises, Khaya Magaxa