KEY POINTS
- Two former Denel executives face corruption charges related to Denel Asia.
- Mantsha and Ntshepe allegedly misrepresented facts to government officials.
- The case has been postponed for further disclosure on May 16, 2025.
Two former executives of Denel, a South African defense company, are facing serious corruption charges in connection with the Denel Asia joint venture.
Lungisani Daniel Mantsha, the former chairperson of Denel’s board, and Zwelakhe Nhlanganiso Ntshepe, the former group CEO, appeared before the Pretoria Specialised Commercial Crime Court on Friday.
They are accused of misrepresenting facts to government officials and violating regulations surrounding the joint venture with VR Laser South Africa and Denel Asia, a private entity based in Hong Kong.
Details of the corruption charges
Mantsha and Ntshepe are accused of claiming that the Denel Asia joint venture had not been formalized. However, the deal had already been signed.
Henry Mamothame, spokesperson for the Investigating Directorate against Corruption (IDAC), revealed that the joint venture involved Denel, which holds a majority 51 percent stake, and VR Laser South Africa, which holds 49 percent.
The alleged misconduct occurred between March 2014 and March 2018. During this time, the executives ignored a directive from the Minister of Finance, requiring approval for any transaction involving Denel.
This directive came after a R1.8 billion ($97.7 million) guarantee was issued by the finance minister to Denel. Mamothame also noted that both men are accused of receiving illicit benefits related to the deal.
They are also accused of improperly disclosing confidential board information between July 2014 and May 2016.
Additionally, Mantsha and Ntshepe are accused of violating the Public Finance Management Act by authorizing bursaries without proper authority.
According to IOL, the court granted the two former executives R30,000 ($1,628) bail, with strict conditions, including the surrendering of their passports.
Court proceedings and the next steps
The case has been postponed to May 16, 2025, for further disclosures.
Mantsha and Ntshepe now face charges that could have significant legal and financial consequences for them and Denel.
The charges are part of an ongoing effort to tackle corruption within state-owned enterprises in South Africa.
