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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:

(a) establishment or participation in the establishment of a company;

(b) participation in a significant partnership, trust, unincorporated joint venture or similar

arrangement;

To this end, the DA will also request that Denel and Treasury provide us with the documentation relating to PFMA compliance of the merger. This should be tabled before Parliament for scrutiny at the earliest possible opportunity.

Parliament cannot stand back and allow our parastatals to be held hostage in a political war being waged by the President. We expect prompt action so that our economy, and the livelihoods which depend on it, can be protected from the political machinations of Luthuli House.

Issued by DA