Johannesburg- Executive board members at Denel, walked away with large sums of money after being suspended as they were accused of what is described as very serious allegations.
This information is according to the recently released, part two of the state capture report which was handed over on Tuesday and focuses on Denel and Transnet.
“Denel paid Mr Riaz Saloojee out a total of R2 362 492. Mr Fikile Mhlontlo received a settlement of his full salary while he was under suspension until the termination date under his settlement agreement as well as a 13th cheque amounting R163 711,25 and an ex-gratia amount of R6 625 644 and short-term incentive bonus of R1 656 411, all without prejudice to his rights under the rules of the Denel Retirement Fund and the medical aid fund. Mr Mhlontlo’s settlement agreement with Denel was dated 25 July 2016. This means that Mr Mhlontlo was paid R8 445 766,35 in addition for receiving his full salary for about 9 months of suspension without working.
The Commission received the evidence of what transpired in regard to Ms Afrika through the affidavit of Mr Sadik.
Through this affidavit the Commission received the settlement agreement concluded between Denel and Ms Afrika. In settlement of her claims against Denel, Ms Afrika was paid an “ex gratia amount” of R1,642 million,” states the report.
The report further states that chairperson of Denel, Daniel Mantsha tried justifying the payments that were made to the suspended executives, but his on this aspect was rejected.
“Mr Mantsha’s version on the conduct or lack of conduct of the disciplinary proceedings was vague. H e blamed the Denel management for not proceeding with the process as should have happened. Mr Mantsha justified the very large pay outs to the suspended executives on the ground that this protected Denel’s reputation. I reject that explanation. The damage to Denel’s reputation took place when the executives were suspended. Their successful prosecution on the serious charges levelled against them would have improved Denel’s reputation,” states the report.
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