Danie du Toit, the Group Chief Executive of Denel says the company is busy with a comprehensive programme to restore good corporate governance, reduce costs and find new opportunities for growth, especially in export markets.
“The support given to us by the President in Parliament will help us to position Denel as a reliable designer and manufacturer of world-class defence and technology systems,” says Du Toit. “Our reputation took a severe battering with the revelations about state capture and widespread irregularities in the company, but we are taking determined steps to get it back on track.
“The positive sentiments expressed by both President Ramaphosa and Public Enterprise Minister, Pravin Gordhan, will help to restore confidence in Denel among existing and prospective clients, suppliers and employees,” says Du Toit.
In his remarks Gordhan described Denel as a crucial and strategic state entity that was substantially harmed by state capture. He also noted that Denel is improving the way that it contracts and is renegotiating existing contracts to improve the margins it earns on such business.
Du Toit says Denel supports President Ramaphosa’s vision of a new landscape in which state-owned companies have the expertise, leadership and appropriate financial models to fulfil their mandates. They have a critical role to play, together with the private sector, in driving economic growth and transformation.