Denel says its contract to supply new generation combat vehicles to the South African National Defence Force (SANDF) is not in jeopardy.
In addition, Denel will continue to deliver the Badger vehicles in terms of its contract.
This comes after the City Press reported that Denel has “jeopardised” a landmark contract worth R8 billion by failing to deliver state-of-the-art armoured vehicles to the army for more than 10 years, and is now being sued for R112 million over contract failure.
In a statement released on Monday, interim Group CEO of Denel, Mike Kgobe, said reports that the Finnish defence company, Patria, is suing Denel for R112m over the project, are false.
According to Kgobe, Denel 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,” he explained.
The state-owned arms company said 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 in 2013.
The Badger is a new generation 8x8 infantry combat vehicle designed to provide soldiers with adequate protection and offensive firepower in high-intensity warfare. It also enables them to dismount from the vehicle and freely interact with civilians during peace-enforcement operations.
Kgobe conceded 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,” Kgobe stressed.
“We are working closely with Patria, Armscor and other stakeholders to ensure the SANDF receives modern combat vehicles which deliver superior mobility, protection and firepower for our troops.”
The Hoefyster programme, according to Denel, is a critical component of the broader moves to modernise the SANDF and ensure its operational readiness. – SAnews.gov.za
