Denel is emerging from a challenging period in its history but is quite confident that it is well on its way to recovery, according to a media release that Denel has distributed.
“The restructuring process continues and will enable Denel to optimise operations, bolster delivery capacity and rebuild trust among industry partners, suppliers and end-users within the defence sector,” said Group CEO Tsepo Monaheng.
“In this we are receiving significant support from our new Shareholder Representative and the Department of Defence, which enables Denel to integrate more fully into the broader defence community and benefit from stronger backing to better support the SANDF and grow our footprint internationally.”
“The 2025 Annual Report reflects the progress we are making on our journey to full recovery. We are establishing the foundation for sustainable growth and operational excellence. We are ensuring that all business areas are sustainable on their own for the group to be successful. We are stabilising our core business strengths and repositioning Denel as a trusted provider of vital defence capabilities,” continued Monaheng.
“Together with the Board of Directors we identified several strategic success factors, which are vital to secure the company’s future sustainability.”
In recent years the Auditor General has expressed significant disclaimers about the company’s internal controls. Much of this can be attributed to a deficient internal control environment and a number of factors including the exodus of skilled employees and inefficient business processes, coupled with lack of integrated ERP system.
The Board and management introduced a robust remedial plan, which includes the re-establishment of strong internal control governance structures that drive implementation of the plan.
“We are confident it will lead to a culture shift that embeds good corporate governance and good internal control systems,” said Monaheng.
Denel also introduced a wide-ranging fraud and corruption prevention strategy which meets international standards, including lifestyle audits for staff, senior management and executives. All senior management positions have now been filled. Denel were able to attract some of the top minds in specialised fields such as leadership, auditing, financial management and business development to lead the company through the final stages of restructuring, and beyond.
Monaheng said “These strategic initiatives have fortified Denel’s position, ensuring its relevance and sustainability in a competitive and rapidly changing global defence and technology environment. Denel’s vital role in the safeguarding of South Africa’s sovereign defence capabilities cannot be overstated. It remains a cornerstone of national security, providing the country with control over advanced technologies, systems and platforms necessary for operational readiness and strategic independence.”
