Publication: Business Day Issued: Date: 2010-10-13 Reporter: Linda Ensor

Denel needs cash injection to make Rooivalk fully operational

 

Publication 

Business Day

Date 2010-10-13
Reporter Linda Ensor
Web Link www.bday.co.za


Cape Town ­ State-owned arms manufacturer Denel has completed the requirements for the certification of the Rooivalk attack helicopter but would require a further cash injection by the Department of Defence to make it fully operational, CEO Talib Sadiq said yesterday.

The South African Air Force has 11 helicopters which still have to be fully developed at a cost to Denel of about R170m, and require state funding for their development, operational and servicing costs.

Defence Minister Lindiwe Sisulu came to the rescue of the beleaguered helicopter when she decided SA still needed the Rooivalk, which has absorbed R8bn of taxpayers’ money since the early 1990s .

Otto Schür, Denel’s group executive: technical, was reported to have said recently that five baseline Rooivalk helicopters would be handed over for operational duties to the South African Air Force’s 16 Squadron next year, with the other six being completed and ready for deployment soon afterwards.

Mr Sadiq stressed in a briefing to Parliament’s public enterprises committee that Denel’s turnaround strategy had been successful apart from Denel Saab Aerostructures (DSA), which would be restructured and downsized in the year ahead. Last year, Denel produced a net profit of R82m excluding DSA, which suffered a loss of R328m.

While the group’s total current order book of about R28bn was strong and the order cover (signed orders as a percentage of budgeted revenue) for in-year orders was 77%, the future multiyear order book, at 20%, was very low, Mr Sadiq said.

With acknowledgements to Linda Ensor and Business Day.



12 combat support helicopters for R8 billion (more like R12 billion all taken at current values), plus crashing one of them means a cost of over a R1 billion each.

And the war ended in 1989, that's 21 years ago.

Quite who thought we needed to develop and deploy our own combat support helicopter and not just lash a couple of ZT-3 anti-tank missiles to the underside of an Oryx helicopter plus a 20 mm cannon out the side door (a la Puff the Magic Dragon), has dissolved into the mists of time.

But to now go the rest of the way for R170 million is a modest cheese.