Public Enterprises Minister Pravin Gordhan on Monday announced a new board for state-owned defense company Denel. The floundering Denel has been implicated in State Capture allegations and is the second State-owned-Enterprise targeted in President Cyril Ramaphosa’s efforts to clean up the sector.
Gordhan announced a completely new board that he said must improve the company’s financial position, bring integrity back to its corporate culture and harness the skills of Denel’s 4,000 employees, many of whom are specialist engineers.
“The changing of the board is the first step we’re taking as government. Clearly their role is to ensure, as the president indicated, that good governance is restored. Secondly, that to the extent that Denel was the victim of and participated in State Capture, that those processes be reversed,” said the minister, citing Ramaphosa’s commitment in his State of the Nation Address to reforming SoEs.