By BAKANG MOKOTO

31 March 2025- Two accused, Lungisani Daniel Mantsha and Zwelakhe Nhlanganiso Ntshepe, briefly appeared before the Pretoria Specialised Commercial Crime Court on counts of corruption that includes The Prevention and Combating of Corrupt Activities Act, Contravention of the Public Finance Management Act, Contravention of the Companies Act and fraud. Their court appearance follows an arrest by the Investigating Directorate Against Corruption (IDAC).

The IDAC spokesperson, Henry Mamothame said Mantsha and Ntshepe stand accused of their alleged involvement in the irregular approval and establishment of the Denel Asia Joint Venture. Mamothame said they allegedly signed the venture without following due process and further misrepresented facts to the ministers that the deal was not yet signed, while it was.

“The alleged irregular joint venture is a formation between VR Laser South Africa (VRLSA) and Denel Asia which is a private company registered in Hong Kong. Denel is said to be a 51% shareholder in Denel Asia, while VRLSA holds 49%.

“They purported VRLSA to be the only suitable business entity that met all the legislative requirements to enter into a Shareholders Agreement with Denel, a South African government entity,” he said.

Mamothame further said at the time of the commission of the alleged offence, Mantsha was a Non-Executive Director and a Chairman of the Board of Directors of Denel, when Ntshepe was the acting Group Chief Executive Officer, but later appointed on the position on a permanent basis. He added that the alleged offences were committed in the period between 2014 March and 2018 March.

“They allegedly disregarded a directive by the Minister of Finance stipulating that all transactions relating to Denel (SA) should be subjected to the minister’s approval as well as the approval from the Ministry of Public Enterprises.

“This was following the finance minister issuing a guarantee to Denel (SA) in the amount of R1.8 billion. They further stand accused of receiving gratification for their alleged involvement in facilitating the deal,” said Mamothame.

He said it was further discovered that confidential information relating to the affairs of the Board of Directors was disclosed between July 2014 and May 2016. Mamothame said there were also further discoveries of disregard to the PFMA stipulations by allegedly awarding bursaries without the required authority to do so.

“The two were granted R30 000 bail and their matter was postponed to 16 May 2025, for disclosures. The court ordered them to surrender their passports and not apply for new ones.

“They were further ordered to make an application with the court to amend the bail conditions l, should a need arise for them to travel outside the country,” he said.

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