Former Denel Executive Says His Advice On Dealing With Gupta-Owned VR Laser Was Ignored

JOHANNESBURG – Former Denel procurement executive Celia Malahlela fought back tears Tuesday as she remembered how the state-owned arms manufacturer was looted.

Malahlela read an email to the state capture commission, who wrote to Denel Land Systems CEO Stephan Burger, who said he ignored his advice to follow proper procedures to award a 10-year contract to VR Laser, owned by Gupta.

She told the commission that the contract was ultimately awarded without her knowledge.

Mahlalela was a procurement executive when Gupta-owned VR Laser was awarded a 10-year contract through a memorandum of understanding and without open bidding.

She wrote an emotional email to Burger, who allegedly told her that he would defend VR Laser.

“Having read various media reports on allegations of state capture by the Gupta family, there are more concerns about the viability of the association and the risks Denel will be exposed to if Denel decides to continue his relationship with VR Laser,” he said. Mahlalela while reading from email.

She continued: “I am struggling to turn a blind eye to this phenomenon. I would like to draw your attention that the current CEO of VR Laser has acknowledged his ties to the Gupta family and the son of the president. [Duduzane Zuma]. “

Burger accused her of being part of the decision, but she denied it.

“However, at the rate at which this controversy is unfolding, I’m not sure this company will survive long enough for my kids to see it,” she read.

Mahlalela said that VR Laser was named even though Denel’s policy was to give preference to its own subsidiary, LMT Holdings, and in some cases VR Laser was given inside information to lower LMT prices.

Download the EWN app on your iOS or Android device.