{"url":"https://newsforagent.com/news/2026-10-17/denel-land-systems-chad-contract-siu","markdown_url":"https://newsforagent.com/news/2026-10-17/denel-land-systems-chad-contract-siu.md","title":"Denel Land Systems: R39.7m Chad Contract Funds Diverted","headline":"Denel Land Systems Diverted R39.7m of Chad Contract Advance, SIU Finds","description":"South Africa's Special Investigating Unit found Denel Land Systems diverted R39.7m of a $7.2m Chad advance.","section":"Legal & Disputes","published_at":"2026-10-17T22:32:31+00:00","modified_at":"2026-10-17T22:32:31+00:00","author":"News Desk","key_takeaways":["Denel Land Systems received a 40% advance of $7.2m on an $18m contract to build 40 Casspir vehicles for Chad.","The SIU found R39.7m of that advance went to three service providers, with 74% unaccounted for.","The SIU has referred Denel's former group CEO and four former DLS officials to the National Prosecuting Authority."],"companies":[{"name":"Denel Land Systems","is_primary":true,"profile_url":null,"website":"https://www.denellandsystems.co.za"}],"source":{"publisher":"EIN Presswire","title":"Millions vanish in Denel deal with Chad","url":"https://www.einnews.com/article/950443009/live"},"other_sources":[{"publisher":"EXPANSION","url":"https://www.expansion.com/empresas/industria/2026/10/17/6ad343a2e5fdea30488b45ad.html"},{"publisher":"Flightglobal","url":"https://www.flightglobal.com/aerospace/2026/10/former-flair-airlines-and-bonza-owner-pleads-guilty-to-fraud/"},{"publisher":"Jiemian","url":"https://www.jiemian.com/article/15199569.html"}],"tags":["Legal & Disputes","Denel Land Systems"],"body_markdown":"Denel Land Systems diverted R39.7m of a $7.2m advance payment on an $18m contract to build 40 Casspir armoured vehicles for Chad, according to a Special Investigating Unit probe presented to parliament's defence and military veterans portfolio committee. [EIN Presswire](https://www.einnews.com/article/950443009/live) reported the findings. The unit said 74% of the advance is unaccounted for.\n\n## What the SIU Found on the Chad Advance\n\nDenel Land Systems is the armoured vehicle division of South Africa's state-owned arms manufacturer Denel. The contract dates to a June 2015 purchase order from Chad for 12 Casspir NG2000 Series B Model 4x4 vehicles, revived in late 2017 on renegotiated terms for 40 vehicles at $18m, about R300m. Chad paid a 40% advance of $7.2m.\n\nThe SIU found Denel diverted R39.7m of that advance to three service providers whose appointments were irregular, with little or no performance. On January 29 2018, Denel paid R15m to VR Laser, owned by Salim Essa, to settle outstanding invoices from unrelated projects; the SIU said VR Laser then failed to render services and did not sign the Chad contract order. Essa lives in Dubai, and the National Prosecuting Authority's extradition attempts have been unsuccessful, EIN Presswire reported.\n\nA second R15m advance went to subcontractor ENNE7 under a R40m contract to deliver a Sino Truck and a donor vehicle from China. The SIU said ENNE7 claimed in its bid to be the sole distributor of the donor vehicle or Sino Truck in South Africa, an assertion the investigation found misleading because two South African companies did the same business. ENNE7 delivered two vehicles valued at about R2m and kept the remaining R13m, the SIU said. Between 2014 and 2016, DLS issued 14 other purchase orders worth R50m to ENNE7 without due procurement processes, the unit found.\n\nENNE7 director Sandy Chudayan said the company had fulfilled its contractual obligations. \"They [the SIU] don't mention that Denel needed to pay the outstanding balance as agreed before delivery. Denel has since taken a further 12 vehicles ... After I told them about the meeting I had with the SIU. There are seven more vehicles that Denel has not collected. I had a lawyer send Denel letters to pay the outstanding amount. My lawyers have not received any correspondence up to now,\" Chudayan said.\n\nThe third payment was R9.7m on December 19 2017 to a technical adviser hired to facilitate negotiations between Denel and Chad. The SIU called the appointment irregular and unlawful, finding Denel did not follow its own policy and the former group CEO did not consult relevant departments. The payment was flagged as fruitless, wasteful and irregular.\n\nDenel spokesperson Pam Dlamini said: \"Denel is not in a position to comment substantively on the specific findings, referrals or potential legal proceedings referred to in your enquiry. We recommend you direct questions regarding the investigation, its findings, the individuals and service providers cited, as well as any criminal, civil or disciplinary referrals, to the SIU.\"\n\n## Corruption Cases at Other Industrial Groups\n\nOther industrial corruption cases have reached courts in recent days. Spain's Audiencia Nacional will try former Duro Felguera leadership and Venezuelan ex-ministers on corruption and money laundering charges, with prosecutors alleging at least $105.6 million in bribes tied to a $1.5 billion power plant contract in Venezuela, [EXPANSION](https://www.expansion.com/empresas/industria/2026/10/17/6ad343a2e5fdea30488b45ad.html) reported on October 17, 2026. The former owner of Flair Airlines and Bonza pleaded guilty to fraud after the US government alleged he lied to lenders to pay deposits on Boeing jets, [Flightglobal](https://www.flightglobal.com/aerospace/2026/10/former-flair-airlines-and-bonza-owner-pleads-guilty-to-fraud/) reported on October 16, 2026. Wei Yuan, former general manager of China Datang Corporation's Hunan branch, is under investigation for serious violations of discipline and law, [Jiemian](https://www.jiemian.com/article/15199569.html) reported on October 16, 2026.\n\n## SIU Recovery and Referral Steps\n\nThe SIU is seeking to recover the money. A civil recovery referral on the R15.6m balance of the advance paid to a service provider is under legal assessment, and the technical adviser's contract is being assessed for possible civil litigation. The unit has finalised a referral to the NPA on Denel's former group CEO over the technical adviser appointment, and made formal criminal referrals against four former DLS officials, including the division's chief financial officer, over the ENNE7 contracts. Four reviews of disciplinary action referrals are awaiting final approval. The SIU recommended Denel enforce compliance with the Public Finance Management Act and ring-fence approved project budgets from general business accounts.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}