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Mlambo has testified in the state capture commission about the company that other officials raised the alarm when he was awarded a 10-year contract beyond the three-year maximum that Denel had set as policy.
A screenshot of Denel’s former head of supply chain Dennis Mlambo testifying in the Zondo investigation on Tuesday, October 27, 2020. Image: SABC Digital News / Youtube
JOHANNESBURG – Denel’s former supply chain chief Dennis Mlambo said on Tuesday that he did not understand how Gupta-owned VR Laser was awarded a contract when its price was R100 million higher than that of the Gupta subsidiary. Denel, LMT, and then reduced its offer by R67 million. .
Mlambo testified in the state capture commission about the company that other officials raised the alarm when he was awarded a 10-year contract beyond the three-year maximum Denel had set as policy.
VR Laser was also allowed to submit a bee certificate after the tender closed, but Mlambo said it’s allowed.
Supreme Court Vice President Raymond Zondo said he believed it was unfair for companies that failed to submit BEE and tax clearance certificates to have a grace period after the closing date of a tender.
But Mlambo said the Treasury allowed it, provided they were submitted before the contract was awarded.
But Mlambo was bothered by something else.
“Firstly, there was a difference of 100 million rand between the initial quotes, but then Burger says that VR Laser offers to reduce the price from 262 million rand to 195 million rand, what was your concern?” the commission asked Mlambo.
He replied: “In the normal business world, I cannot imagine a company that is well run and does a proper cost calculation, simply cutting R67 million.”
Another former supply chain executive, Celia Malahlela, broke down when she explained how she thought the state-owned company was being brought to its knees.
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