Gigaba scraps multi-billion rand deal with Guptas: report
Finance Minister Malusi Gigaba has scrapped a multi-billion rand deal involving a Gupta-linked company, due to the possible financial implications of the deal for the National Treasury, according to a report by the Sunday Times.
According to the report, Gigaba summoned Denel board chairman Dan Mantsha to Durban on Friday to inform him that the deal would no longer be taking place, and further instructed him to withdraw Denel’s high court application against the Treasury.
The application had been instituted against former finance minister Pravin Gordhan’s refusal to approve the company’s joint venture with VR Laser Asia to form a new company called Denel Asia.
In addition to a cancelling the deal and ordering a withdrawal of the application, Gigaba also reportedly took a hardline stance with Mantsha, ordering him to deregister Denel Asia and dissolve the joint venture with VR Laser Asia.
“The minister raised a concern with the board chairperson that the joint venture didn’t make business sense to the National Treasury, and the other matter of serious concern is the financial implications of the deal to the National Treasury,” said Gigaba’s spokesperson, Mayihlome Tshwete.
According to the report, Gupta business associate Salim Essa is the sole shareholder of VR Laser Asia and it is understood that the family was set to make billions from the deal.
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