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Former Denel Nonyameko Mandindi board member testifies before the Zondo Commission on October 26, 2020 in Johannesburg. (Photo: Gallo Images / Luba Lesolle) / Denel’s Board President Monhla Hlahla. (Photo: Gallo Images / Luba Lesolle)
Former President Jacob Zuma removed Lugisani Daniel Mantsha as his attorney in April 2020. Mantsha represented Zuma for two years, after he resigned from his job at the state arms company Denel. Mantsha’s name resurfaced in the State’s Capture Investigation Monday for executive suspensions in 2015.
A former Denel board member has detailed the hasty suspension of three executives from the weapons company in 2015, when the company’s management came under new scrutiny.
Nonyameko Mandindi testified in the state’s arrest investigation on Monday, October 26. His appearance was followed by that of the current chairman of the board, Monhla Hlahla.
Mandindi and Hlahla’s testimony marked a return to the evidence on Denel. The last weeks of hearings concerned other state-owned companies (SOEs) Eskom Y Transnet when the legal team of the investigation returned to the Terms of Reference.
Advocate for evidence leader Paul Kennedy SC detailed Denel’s revised workflow, which is scheduled for early November.
Kennedy told the chairman of the investigation, Supreme Court Vice President Raymond Zondo, that the hearings would consider acquisition processes “that also allegedly involve individuals who have been implicated in connection with the state capture allegations, including Mr. Salim. Essa in particular and the Gupta brothers. ” , and others”.
He highlighted areas of interest, including three contracts awarded to former Denel VR Laser company that the Guptas bought; a joint venture with VR Laser to develop business in Asia with an emphasis on India, and how this relates to State Capture.
In a 2018 submission to the investigation, the Organization Undo Fiscal Abuse (Outa) accused former Minister of Public Companies Lynne Brown of leading a board that “planned the capture of Denel.”
“Outa believes that the board created by Brown made decisions about Denel that did not make business sense, but were intended to line the pockets of the Guptas in a massive state robbery,” the presentation read.
Former Denel Board Member Mandindi detailed his concerns about the hasty suspension of three Denel executives in 2015 when Attorney for Former President Jacob Zuma Lugisani Daniel Mantsha was chairman of the board.
On Thursday, September 24, 2015, news broke of the suspension of then-CEO Riaz Saloojee, CFO Fikile Mhlontlo and company secretary Elizabeth Africa.
The night before, Mandindi said, questions about executives’ conduct had come up in Denel’s relatively new board during a special meeting.
Mandindi reported that the meeting started late. She claimed that Mantsha called her into her office where she said the delay was due to the Audit and Risk Committee (ARC) discussing the conduct of the executives.
Zondo was eager to learn why the suspension of the executives was deemed urgent during the meeting on Tuesday, September 23, 2015.
“That was my concern,” Mandindi replied.
Mandindi said he raised the alarm about ruining the careers of black professionals by acting in a hurry. “The way you let people go can destroy them too,” he said.
Mandindi testified that he had prepared for a discussion on Land Systems South Africa (LSSA), but the meeting’s agenda soon changed to the defamed conduct of the executives. “I was a bit confused, because that was not the purpose of the meeting,” she said.
Questions about the competence of the CEO and CFO “took precedence over the exact topic” for which the special meeting had been called, namely LSSA.
Note: Several months earlier, Denel completed the acquisition of LSSA from BAE (75% to R641 million) and DGD Technologies (25% to R214 million).
Mandindi testified that there was no discussion about LSSA during the meeting while he was present, and he left early.
Zondo asked if the change in LSSA’s agenda to executives was formally agreed to by board members. Mandindi couldn’t remember.
Mandindi said that ARC members focused attention on executives’ conduct.
In his view, board members, including leader Mantsha, were still “finding our feet around Denel,” making talk of suspending executives premature.
“It just happened too fast. From July to September, I thought it was too much, ”Mandindi said.
Furthermore, for her it was “a bit strange and also unfair” that executives and board members discussed suspensions during a meeting designed to discuss LSSA.
Mandindi said it was “too early” to question the conduct of executives, consider suspensions and even identify candidates to fill their roles as an actor.
He said that during the meeting a report from the ARC on the conduct of the executives was provided to the board members. There was insufficient time to evaluate the report, which, Mandindi said, “contained inaccuracies” and lacked substance.
“I was extremely worried,” she recalled. By the time he left the meeting around 9 pm, the board had not made a decision.
Zuma has since removed Mantsha as his attorney and replaced him with Eric Mabuza, who also represented former tax commissioner Tom Moyane.
Zondo questioned Mandindi about his departure before the conclusion of the meeting.
“I did not like the discussion, President, and I did not come prepared for a discussion like that. I just didn’t feel like it was going to add more value, ”he said.
Last year, Zondo heard evidence about the devastating consequences of Mantsha’s leadership on the government arms company.
Brown announced a “rotation” of Denel’s board on Friday, July 25, 2015. She appointed Mantsha for a three-year term.
In a government press release issued at the time, Brown praised the outgoing board for its accomplishments.
“They delivered a company that is really on the path to positive sustainability,” Brown said.
“I commend them for their professionalism and for ensuring that the handover report is of such quality that it will be a fundamental guide for the new board.”
However, in a matter of months, the conduct of the Mantsha board was so dubious that Mandindi walked out of a meeting and immediately noted his concerns in a letter.
Last year, the deputy director general of the Department of Public Enterprises, Kgathatso Tlhakudi, told Zondo about his “surprise” at Mantsha’s appointment.
On March 19, 2019, he raised questions about Mantsha. “Mr. Mantsha was at some point removed from the list of attorneys. That doesn’t seem like a good background, ”Tlhakudi said.
Mantsha’s resignation from Denel was confirmed in early March 2018, just days after Brown was replaced as Minister of Public Enterprises.
President Cyril Ramaphosa appointed Pravin Gordhan as Minister of Public Enterprises on Monday, February 28, 2018.
Several months after leaving Denel, Mantsha was speaking on Zuma’s behalf as a senior on his legal team.
On the first day of the investigative proceedings, an emboldened Mantsha appeared before Zondo as Zuma’s attorney.
“I want to make it clear that we do not want to delay this process … we do not intend to stop this process,” Mantsha said on Monday, August 20, 2018.
Before Zuma’s only appearance in the investigation to date, Mantsha said that Zuma was “enjoying” the prospect of testifying to “expose” legal and judicial abuses.
Zuma has since removed Mantsha as his attorney and replaced him with Eric Mabuza, who also represented former tax commissioner Tom Moyane.
In April 2020, Zuma announced the change through a statement issued by the JG Zuma Foundation.
He said it was in the best interest of Zuma to separate from Mantsha in order to prepare for his criminal trial. Zuma expressed his “unreserved trust and confidence” in defender Muzi Sikhakhane SC, who remained a member of his legal team.
As for not delaying or stalling the process, Zondo has authorized a subpoena compel the former head of state to testify about five days in november.
In response, Mabuza on behalf of Zuma announced a plan to defend the disqualification of Zondo as chair of the investigation.
The evidence about Denel continues on Tuesday, October 27, starting at 10 a.m., when former supply chain management executives Celia Malahlela and Dennis Mlambo are ready to testify. DM
