Denel appeals for funds to complete Rooivalk project

Denel, the state-owned arms manufacturer, says it needs government money to complete the development of its Rooivalk attack helicopter. Denel executives today told Parliament's public enterprises committee that the programme has cost R2 billion so far. They say another R600 million is needed to turn the Roovialk into a commercial product.

"We have said to the air force and the government, we need to have a firm date by which this machine will deploy. If we fail to arrive at a specific deployment within months rather than years we have to shut down the programme. It's a simple as that," they said.

Victor Moche, the CEO of Denel, says the Rooivalk is one of the best of its kind and many countries are interested in buying it. However, he says, they are put off by perceptions that the helicopter is still a product under-development.

"The problem has been that they have looked at it and said, 'but it is a product in development'. I need a mature product, and the minute Denel can arrive at a point where it freezes that baseline, finalises the developments that are current and puts out a product that people can buy, it will fly," he said.

Denel made a R377 million loss last year. Part of its turn-around strategy is to convince the government to put up the money to strengthen its battered balance sheet. Sandile Zungu, the chair of the Denel board, says that, more than words, will convince potential customers of Denel's reliability as an arms supplier.

SABC News