Denel’s contract to supply new generation combat vehicles to the SANDF is not in jeopardy and it will continue to deliver the Badger vehicles in terms of its contract.
Mike Kgobe, interim Group CEO of Denel says reports that Denel is being sued for R112m over the project by the Finnish defence company, Patria, are false.
“Denel has reached a settlement agreement on outstanding issues with Patria in December 2022,” says Kgobe. “All legal actions by Patria were halted in terms of this agreement and Patria continues to support Denel in the execution of the contract.”
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.
Kgobe says 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,” says Kgobe. “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 is a critical component of the broader moves to modernise the SANDF and ensure its operational readiness.
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