High-Profile Corruption Trial: Former Denel Executives Face Court Over Alleged Irregularities

Two former senior executives from Denel, South Africa's state-owned aerospace and defense company, have been thrust into the spotlight as they appeared in the Pretoria Specialised Commercial Crime Court facing serious corruption charges. Lungisani Daniel Mantsha, former Non-Executive Director and Chairman, and Zwelakhe Nhlanganiso Ntshepe, former Acting and later permanent Group Chief Executive Officer of Denel, must now defend themselves against allegations that threaten to expose deep-seated corruption within one of South Africa’s critical state-owned enterprises.

The charges stem from their involvement in the establishment and approval processes related to the Denel Asia Joint Venture, a controversial partnership formed between VR Laser South Africa (VRLSA) and Denel Asia, allegedly conducted outside the required legal and procedural frameworks. Denel Asia, registered in Hong Kong, saw Denel maintaining a 51% shareholding, with VRLSA holding the remaining 49%. The prosecutors accuse Mantsha and Ntshepe of presenting VRLSA as the only competent entity for the partnership, despite allegations of bypassing due process.

Crucially, the duo is blamed for misleading ministers about the status of the deal, asserting that agreements had not been finalized when, in reality, they were. This joint venture became particularly contentious, drawing scrutiny over its compliance with the directives set forth by the Minister of Finance and the Ministry of Public Enterprises, which included stringent oversight of significant transactions following a financial guarantee extended to Denel.

Moreover, the prosecution claims that both officials potentially received benefits tied to their facilitation of the Denel Asia deal. There are further allegations regarding the mishandling of confidential Board information and the unlawful allocation of bursaries, pointing to a broader disregard for corporate governance under the Public Finance Management Act (PFMA).

The court granted Mantsha and Ntshepe bail at R30,000 each and has scheduled the next hearing for May 16, 2025, when further disclosures are expected. Until then, strict measures, including the surrender of their passports and a prohibition on applying for new travel documents, have been imposed to restrict their movements, ensuring they remain available for their trial's continuation.

This case unfolds amid broader efforts by South African authorities to clamp down on corruption within state-owned enterprises, a pivotal part of President Cyril Ramaphosa's administration's reform agenda, aiming to restore public and investor confidence in these institutions.