Appointments of senior executives at SOEs can no longer be left to politicians: State Capture Report

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The second volume of the State Capture Report released on Tuesday found that appointments of senior executives at state-owned entities can no longer be left solely in the hands of politicians.

The latest report focuses on transactions at Denel and Transnet.

The report has questioned how the once internationally regarded state owned Denel was brought to its knees to the point where it is facing liquidations and insolvencies.

In its findings and recommendations, the commission flags the appointment of members of the board and CEO’s at state companies as a matter of serious concern.

It says politicians failed dismally to appoint people with integrity.

The report recommends that Denel, the Department of Public Enterprises and the Companies and Intellectual Property Commission (CIPC) should consider bringing appropriate proceedings against some of the directors at Denel.

It further recommends that a body be established tasked with identifying, recruiting and selecting the right people for the jobs.

Daniel Mantsha and Lynne Brown

The report also found that former Denel chairperson Daniel Mantsha together with former Public Enterprises Minister Lynne Brown played a key role in aiding State Capture at Denel.

The report recommends that law enforcement agencies should conduct investigations with a view of possible prosecution of members of the 2015 Board of directors at Denel.

According to the report, the 2015 Board of Directors of Denel led by Mantsha failed to carry out their fiduciary duties when they suspended top performing executives.

The commission recommends Denel, the Department of Public Enterprise and CIPC consider bringing court proceedings against Mantsha and other former directors declaring them delinquent or under probation.

Mantsha was a key player in aiding State Capture at Denel as he campaigned to get rid of effective executives to capture Denel for the Gupta’s.

Hulls, DLS Single Source and DVS Single Source contracts

The report further found that the Hulls, DLS Single Source and DVS Single Source contracts were all irregularly awarded to VR Laser and in breach of Section 217 of the Constitution.

The commission recommended that the Legal Practice Council be made aware of the findings against Mantsha so that they can conduct their own investigations.

The council should also determine whether he is “fit and proper” to practise as an attorney.

Below is the second volume of the State Capture Report: