Defence Minister Motshekga firmly rejects freezing new Denel orders amid financial crisis

DEFENCE Minister Angie Motshekga is standing firm in her refusal to freeze new orders for arms manufacturer Denel, despite the state-owned enterprise’s financial failure to meet parliamentary reporting deadlines.

- MAYIBONGWE MAQHINA

Motshekga asserts that her ministerial role does not extend to interference in Denel’s commercial dealings.

She made the statement days after she wrote to Parliament, requesting an extension to table Denel’s 2024/25 annual report after the entity failed to meet the stipulated September 30 deadline because the audit for the 2024/25 financial year has not yet been finalised.

Replying to parliamentary questions from DA MP Chris Hattingh, Motshekga said while her department was the government's shareholder representative, Denel was governed by the Public Finance Management Act (PFMA).

“This means it operates as a government business enterprise with its own legal identity, separate from the Department of Defence,” she said.

Hattingh had enquired whether Motshekga will freeze any new Denel orders above R100 million pending the tabling of the entity’s financial statements in Parliament.

Motshekga said her role was to hold Denel’s board of directors accountable and to oversee Denel’s performance and ensure compliance with its legal and financial obligations.

“This executive authority does not give the minister the power to interfere in the day-to-day commercial operations, like freezing specific orders or bids from other clients.