Gordhan rejects Joburg mayor's claims he misled Parliament on Denel loan | Fin24
 
  • Money Flows

    About 3 000 super-rich have left SA in the past 10 years, according to a new report.

  • Nelson Mandela

    Madiba would have been alarmed at the polarisation and hate speech in SA, says Derek Hanekom.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Gordhan rejects Joburg mayor's claims he misled Parliament on Denel loan

Oct 24 2018 22:44
Khulekani Magubane, Fin24

Minister of Public Enterprises Pravin Gordhan has accused Johannesburg Executive Mayor Herman Mashaba of using Denel to play petty politics between South Africa’s richest metro and the national government.

This comes after Mashaba was reported to have implied that Gordhan misled Parliament in written replies to MPs when he said that the R290m loan facility that Denel accessed from the City of Joburg through Regiments Capital was legal.

Gordhan has told Members of Parliament in a written reply to questions that the R290m loan which the Johannesburg Metropolitan Municipality paid to Denel was lawful.

The Department of Public Enterprises released a statement on Wednesday in which Gordhan tore into Mashaba for casting doubt over the veracity of Gordhan’s reply to a question from Congress of the People MP Willi Madisha.

"His latest public statements that I am being economical with the truth, by explaining the legality and details of the City of Johannesburg’s R290m loan facility to Denel imply that I have misled or lied to Parliament," said Gordhan.

In his written reply, Gordhan told Madisha, Gordhan said the loan facility was approved by the Board of Denel on 4 September 2012. Government had approved the domestic medium term note in 2007-08 for R2.2bn, which provided for both secured and unsecured components.

He said the Denel board approved the R290m facility on 4 September 2012, at a time when Denel was a profitable state-owned company with a healthy balance sheet.

Gordhan maintained that his written response to the parliamentary question was correct and urged Mashaba to approach the department to discuss corrective measures if the city found that its relationship with Regiments was improper.

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote

Loading...