Former Denel Land System CEO ‘unaware’ contract with Gupta-linked company was unlawful
Former Denel Land Systems CEO Stephan Burger has told the commission of inquiry into state capture that he was unaware that the single-source contract the company entered with Gupta-linked VR Laser was unlawful.
Former Denel Land Systems CEO Stephan Burger has told the commission of inquiry into state capture that he was unaware that the single-source contract the company entered with Gupta-linked VR Laser was unlawful.
This is despite being warned by the company's head of procurement, Celia Malahlela.
Malahlela told the commission last month that the companies entered into a multi-billion rand, 10-year contract in 2016 without an open tender.
Burger admitted to the commission on Tuesday that he was aware that the contract would violate Denel's procurement policy.
"The policy was there to govern the organisation but like anything in life there are exceptions.
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"At the time I was most definitely aware that it was a breach of any laws. I was aware that it was a breach of the Denel procurement policy. Chair, this document was not placed in a dark corner, every single person including my boss knew about this, and in that respect, if we did anything unlawful, there should have been action taken," said Burger.
He later acknowledged that Malahlela was correct, but he said they was no way that they could have known she was correct at the time.
The commission’s chair, Deputy Chief Justice Raymond Zondo, was not convinced.
He said Burger should have double-checked the policy and not override the head of procurement.
