An employee at state arms manufacturer Denel is desperately trying to sell his remaining car to get money to pay some of his debts, including a bond that was last serviced eight months ago.
On Tuesday, he stayed up for most of the night poring over the state capture report released by commission chair, acting chief justice Raymond Zondo. It details how Denel was brought to the brink of collapse by corruption, leaving almost 2,000 workers in financial ruin.
“I went through the report... it’s a confirmation of what I already knew but sadly the roots of state capture are still there at Denel right now,” said the man who spoke on condition of anonymity.
Last year, he sold one of his cars as he struggled to make ends meet due to the nonpayment of full salaries at Denel.
He is not confident that anything will change as the company awaits a government bailout.
“There’s a general manager whom the report names and his role in allowing state capture at Denel. He’s still there earning millions from the company he played a role in damaging,” he said.
The married father of two is unable to make the monthly bond repayments as he last received his full salary in April 2020.
He and his colleagues are hoping for a miracle as the company is now a shadow of its former self.
The man, a qualified technician, works in Denel Land Systems (DLS), largely considered as the continent’s premier supplier of land defence systems and a strong player in the global defence environment.
According to part 2 of the commission's state capture report, DLS had been one of the divisions targeted by Gupta-linked company VR Laser, which became a preferred supplier.
Zondo revealed that VR Laser was unfairly favoured by Denel.
“The awarding of the Hulls contract [to VR Laser] was irregular. The process by which the Hulls contract was awarded was flawed in the after respects; it was improper to approach VR Laser to reduce its tendered price without giving the other two tenderers a chance to revise their tenders,” the report said.
Denel showed profits between 2011 and 2015, with an order book worth R35bn after expanding its market to include the Middle East, Africa, South America and Far East regions.
The controversial Gupta family at the heart of state capture allegations acquired VR Laser in January 2014.
This came after the Guptas had meetings with Denel's executives, some in the presence of then public enterprises minister Malusi Gigaba.
The Guptas had told Denel's former CEO, Riaz Salojee, that they were interested in doing business with the state-owned entity.
Another Denel employee, a project manager in one of the divisions, told Sowetan that Zondo “merely put out nothing new, he just put it in an official report”.
“I've had to tap into my long-term savings to be able to build backyard rooms just so that I could afford to feed my family,” the man said.
The report also indicates how Mandla Gantsho was overlooked for the Transnet CEO post by Gigaba in favour of Brian Molefe.
Gigaba ignored the fact Gantsho had scored the highest in the interviews.
Gantsho told Sowetan on Wednesday that he had not been aware of what was happening behind the scenes that led to him being snubbed for the job to lead Transnet.
“I was not aware I was a victim of state capture when I was not appointed. I went into the interview and it went really well. When I left, I was confident I would get the job but when I was told I didn’t get it, I moved on with my life,” Gantsho said.
“It only came to me that I was a victim of state capture when I was watching the proceedings of the commission. But by then I had already moved on with my life.”
The first part of Zondo's report, released last month, recommended that both former SAA chairperson Dudu Myeni and former chair of the SAA Technical board Yakhe Kwinana be investigated for corruption and fraud for their roles at the national carrier that led to widespread looting, bringing the airline to its knees.
A crew member who opted for the training layoff scheme for those who didn’t take the voluntary severance package last year, now has seven weeks to be absorbed by SAA or face being retrenched.
“I'm nervous and panicking. I'm struggling with my basic salary, which is around half of what I normally got every month,” she said.
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