By Lehlohonolo Lehana.
The board of state-owned defence manufacturer Denel snubbed a scheduled meeting with parliament’s standing committee on public accounts (Scopa) on Tuesday.
Denel was scheduled to appear before Scopa on Tuesday to explain why it did not table its annual report, to provide an update on the its liquidity crisis, and wasteful expenditure, among other pressing issues.
The committee was also expected to receive an update on the investigations conducted by the Special Investigation Unit (SIU) at Denel.
But the meeting was adjourned after Denel’s board snubbed Scopa, leaving members of the committee frustrated.
Scopa chairperson Mkhuleko Hlengwa indicated that he was notified that Denel board chairperson Monhla Hlahla was abroad.
However, he was informed that there would be other board members available, although Denel Group interim CEO Mike Kgobe was present at the meeting.
Hlengwa said Denel’s board no-show was disrespectful and unacceptable.
Denel came under fire in February, when the auditor general informed Scopa that the parastatal had been late with its external audit statements for two consecutive years. Its 2020-21 statements were 18 months late, while its 2021-22 statements were eight months late. During that meeting, Hlengwa said the company had displayed an absence of consequence management.
The company has, in the past five years, received taxpayer funded bailouts of R9 billion to escape financial distress, ensure financial sustainability and service debt.
Democratic Alliance (DA) MP Alf Lees agreed with Hlengwa and suggested that the board be recalled to appear before the committee.
“If we don’t proceed, it is wasteful expenditure on many parts, but also delays accountability and oversight.”
Another DA MP Benedicta van Minnen also expressed her disappointment and frustration with Denel, pointing out that Denel has received a total of R9 billion in bailouts over five years.
“There are 9 billion reasons the board should be here today and I cannot find any reason whatsoever why they are not here. I think it is appalling that the accounting authority with a record like that has got better things to do. I think it is very problematic,” said van Minnen.
Hlengwa suspended the meeting, saying it would be held next week. He also asked, rhetorically, why the costs of the meeting should not be borne by board members in their personal capacities.