Solidarity asks Madonsela to probe Gupta-Denel deal


Eskom has unfairly awarded the politically-connected Gupta family a coal supply contract at one of its power stations.

JOHANNESBURG - Trade union Solidarity on Wednesday said it has requested Public Protector Thuli Madonsela to probe the partnership between Denel and the Gupta family.

"Solidarity, the largest trade union within Denel, contends the transaction holds many negative consequences for the future of the company and that of its employees," Solidarity said in a statement.

This follows reports that the Gupta family held a minority interest in a joint-venture partnership that the state-owned defence-manufacturing company Denel has in Asia.

Solidarity head of professional industry Johan Botha said there were numerous question marks over the legitimacy of the transaction, given the Gupta family’s strong ties with President Jacob Zuma.

The union also questioned that the transaction was concluded at a time when Denel’s chief executive and chief financial officer both had been suspended.

“As a trade union we are concerned about the impact this controversial partnership will have on Denel’s reputation, which has lately been tarnished by a number of negative events. We are furthermore concerned about its impact on this year’s salary negotiations and that our members will be adversely affected by it,” Botha said.

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