Despite having been paid a R100 million deposit almost two years ago, the state arms company Denel has failed to supply R250 million worth of army vehicles to the government of Chad.
In 2017, Chad bought 40 military Casspirs from Denel, but the company could not deliver them while officials squabbled over the ownership of the lucrative intellectual property (IP) rights – which had been given to the Gupta family for free – to build the vehicles.
Chad has since cancelled the contract and demanded its deposit back from the cash-strapped arms company.
Denel’s failure to deliver comes at a time when the firm is struggling with liquidity issues.
Last month, Denel received a much-needed bailout of R1.8 billion from Treasury.
At the time, Treasury said the company would get another billion next year.
In recent months the company, which has been implicated in state capture, has struggled to pay employees on time. At the end of
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