Citizen Reporter
Reporter
2 minute read
8 May 2017
12:51 pm

Gigaba still a ‘puppet’ despite cancelling Gupta-linked company deal

Citizen Reporter

Only the politically naive will think the minister's decision means he is against the Guptas, says EFF's deputy president.

Former minister Malusi Gigaba. Picture: Gallo Images

Following Finance Minister Malusi Gigaba’s cancellation of a deal involving Gupta-linked company, Denel, Economic Freedom Fighters (EFF) deputy president Floyd Shivambu has shared his thoughts on the matter.

Though some were excited at the news, saying Gigaba had done the “right” thing, Shivambu said he was not fooled by the decision. “Only the politically gullible/naive will think that [Malusi] Gigaba’s Gupta contract entails he’s against them,” he said.

Shivambu said Gigaba was still a “puppet”, reiterating former ANC MP Vytjie Mentor’s accusation that all newly appointed MPs were puppets of the Guptas.

South African Federation of Trade Unions (Saftu) secretary-general Zwelinzima Vavi, however, seems to have been ‘fooled’ by Gigaba’s decision, saying Atul Gupa would not like it.

“What happened, I am surprised,” he said.

Gigaba cancelled a deal involving Gupta-linked company, Denel, after summoning its board chairperson, Dan Mantsha, to Durban on Friday to express his concern about the financial implications of the deal for the National Treasury.

Gigaba further instructed Mantsha to withdraw Denel’s high court application against National Treasury, The Sunday Times has reported.

The company had challenged former finance minister Pravin Gordhan’s refusal to approve Denel’s joint venture with VR Laser Asia to form a new company called Denel Asia.

Gigaba was reportedly “hard” on Mantsha, further instructing him to deregister Denel Asia and dissolve the venture.

His spokesperson, Mayihlome Tshwete, reportedly said the venture “didn’t make business sense” and also had “financial implications” to Treasury.

Denel had, in March, applied to the North Gauteng High Court for an order declaring it had obtained approval to form a joint venture with VR Laser Asia, which has resulted in the establishment of Denel Asia.

“In spite of the company’s numerous attempts to work with National Treasury to explain the legal processes followed in establishing the Denel Asia joint venture, this matter remains unresolved and continues to unfairly cast doubt on Denel’s reputation and governance regime,” Denel’s acting group chief executive officer, Zwelakhe Ntshepe, said.

Read more:

Gigaba cancels multibillion rand deal with Gupta-linked company