The demise of government’s Department of Public Enterprises (DPE) saw Denel, along with other State-owned enterprises (SOEs), moved to “line function ministries”.
This meant Defence and Military Veterans Minister Angie Motshekga, in terms of an August Presidential proclamation, is now tasked with the “administration, powers and functions entrusted by specific legislation” for Denel from the defunct DPE.
Viewing this development dispassionately in the light of the still coming State Asset Management Company (SAMC), which will oversee SOEs previously the responsibility of the DPE, is Democratic Alliance (DA) defence and military veterans spokesman Chris Hattingh.
“As it stands now Denel is an SOE reporting to Motshekga. If logic is applied it means the Parliamentary oversight function for Denel resorts under the Portfolio Committee on Defence and Military Veterans (PCDMV). If this status quo is retained or will change will depend entirely on the legislation relating to the yet-to-be constituted SAMC he told defenceWeb adding “it’s clear Denel has to be subjected to vigorous oversight”.
Hattingh will keep a close eye on SAMC developments, including publication – for comment – of a draft bill.
“Whether the SAMC and its as yet unknown mechanisms will provide for this level of oversight remains to be seen,” he said, pointing to the past where “many years of oversight did not prevent many SOEs, including Denel, becoming the mess they are”.
Hattingh further told this publication the PCDMV was informed by the Auditor-General (AG) Denel’s audit for the 2023/24 financial year was outstanding due to non-submission of annual financial statements for the same period. The “anticipated” submission date for the Denel 2023/24 annual financial statements is 30 November, the committee heard.
In April this year the Companies Tribunal, an agency of the Department of Trade, Industry and Competition (DTIC), reprieved the defence and technology conglomerate for not “timeously” holding annual general meeting (AGMs), where annual reports and financial statements are tabled. The reprieve was reported by Johannesburg-based financial daily Business Day, which noted the Centurion-headquartered SOE last held an AGM in January 2021. The Companies Tribunal has it, in terms of the Companies Act, that AGMs must be held annually and no more than 15 months after the date of the previous AGM.
Business Day reported the SOE had finalised its financials “but the AG was unable to conclude the audits within the stipulated time”. This “forced” Denel to request further extensions for the 2021, 2022 and 2023 financial years by no later than the end of May this year. The request was granted by the Companies Tribunal, the paper reported.
As of today (1 November) the “newest” annual report on the Denel website is for 2020.
