Gupta-owned group VR Laser has scored big in a multi-billion rand government contract through state-owned defence company, Denel, the City Press reported.<\/p>\n
The contract in question is for 238 Badger vehicles, valued at R10 billion, awarded to Denel in November 2013.<\/p>\n
According to the report, Denel Vehicle Systems would be responsible only for the construction of the vehicles, while Gupta-linked VR Laser would do the steel cutting.<\/p>\n
Ajay Gupta’s eldest son – Kamal Singhala – is a director of the company.<\/p>\n
Denel spokesperson Pam Malinda said VR Laser is a steel-cutting specialist, and that Denel followed the necessary procedures to award the contract to the company.<\/p>\n
In 2013, DAM MP David Maynier said\u00a0the total cost of the 238 vehicles being acquired was not known, but was estimated to be R10 billion.<\/p>\n
\u201cThis means that each Badger infantry combat vehicle could cost approximately R42.5 million,\u201d he said.<\/p>\n
The contract is on top of a recent partnership between VR Laser and Denel, which is currently pushing ahead, despite claims from Treasury that it is illegal.<\/p>\n
This week, Treasury said that the directors of Denel\u00a0will face charges of financial misconduct if they\u00a0move ahead with a new joint venture with VR Laser.<\/p>\n
However, Denel maintained that all legal processes had been followed when it had set up a joint venture with\u00a0the\u00a0Gupta-associated company. The groups said that there was a misunderstanding on finance minister Pravin Gordhan’s part, and that the deal would thus proceed.<\/p>\n
Treasury said that it had not\u00a0yet\u00a0approved the deal, making it illegal if it proceeds.<\/p>\n
According to the City Press, while Denel is a 51% stakeholder in the partnerships, millions of rands will be paid in commission to marketers and agents in Asia, reducing profits.<\/p>\n
Many of the outside companies involved including VR Laser Asia – which has one shareholder who is allegedly an affiliate of the Gupta family – who stands to reap massive profits from the deals.<\/p>\n
You can read the full story in the City Press for 17 April 2016.<\/em><\/p>\n Eskom board member steps down due to Gupta influence: report<\/a><\/strong><\/p>\n SA banks acted independently against the Guptas: report<\/a><\/strong><\/p>\nMore on the Guptas<\/h3>\n