Finance Minister Gigaba continues to oppose Denel Asia deal

The National Treasury on Friday reaffirmed, in a press release, that Finance Minister Malusi Gigaba continues to oppose the proposed joint venture between the State-owned Denel defence industrial group and VR Laser Asia, intended to create a company called Denel Asia. The press release was issued in reaction to “media statements attributed to Denel” regarding the matter, which National Treasury had “noted”. National Treasury stated that Minister Gigaba had met with Denel Chairperson Daniel Mantshe to discuss Denel Asia. The Minister made clear his rejection of the deal, on the grounds of Denel’s fragile financial situation. He also “invited” Denel to withdraw its court case against the National Treasury. “The position of the Minister of Finance has not changed in this regard,” affirmed National Treasury in its press release. “He remains opposed to the transaction for reasons stated elaborately in the National Treasury affidavit to court.”