Denel is not being sued by Finish defence company, says group CEO

Picture: Global supplier of defense products, Denel. (Supplied).

Picture: Global supplier of defense products, Denel. (Supplied).

Published May 23, 2023

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Johannesburg - Group CEO of Denel Mike Kgobe says reports that the state-owned enterprise was being sued for R112 million over the project by the Finnish defence company, Patria, are false.

This is in relation to a contract to supply new-generation combat vehicles to the SANDF, named the Badger vehicle.

According to Denel, the Badger forms part of Operation Hoefyster, a joint project between Denel Land Systems and Patria to deliver armoured combat vehicles to be used by the SANDF. Armscor, as the acquisition agency of the SANDF, issued the original tender for the vehicles.

"Denel has reached a settlement agreement on outstanding issues with Patria in December 2022. All legal actions by Patria were halted in terms of this agreement, and Patria continues to support Denel in the execution of the contract," said Kgobe.

Kgobe added that the contractual and financial difficulties that affected the project in recent years have now been resolved and the programme is continuing, as approved by the Department of Defence.

"The contract is definitely not at risk. We are working closely with Patria, Armscor, and other stakeholders to ensure the SANDF receives modern combat vehicles that deliver superior mobility, protection, and fire-power for our troops," added Kgobe.

The Hoefyster programme is a critical component of the broader moves to modernise the SANDF and ensure its operational readiness.

In other military news, the army reserves took part in the South African Army Combat Rifle Shooting Evaluation. Members from Botswana, Lesotho, and Zimbabwe also took part in the exercise.

In a week-long practise, the competition phases build to their climax on Friday, May 19, to be capped by a prize-giving ceremony for the top Army Reserve shooters, followed by a head-to-head between South African Army Regulars and Reserves, together with the international teams from Botswana, Lesotho, and Zimbabwe.

"The cold morning and crisp afternoon with greatly varied weather conditions did nothing to diminish the zeal that these volunteer soldiers brought to the rifle range, and with every successive shooting exercise conducted at the 100m, 200m, 300m, or 400m firing points, or at the butt/backstop area where targets are raised and lowered after being indicated, scores tallied, and patches, the camaraderie was more and more evident," read an SANDF statement.

The Star

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