Denel says its contract to supply new-generation combat vehicles to the South African
National Defence Force (SANDF) is not in jeopardy.

In addition, Denel will continue to deliver the Badger vehicles in terms of its contract.

This comes after the City Press reported that Denel has “jeopardised” a landmark
contract worth R8 billion by failing to deliver state-of-the-art armoured vehicles to the
army for more than 10 years, and is now being sued for R112 million over contract
failure.

In a statement released on Monday, interim Group CEO of Denel, Mike Kgobe, said
reports that the Finnish defence company, Patria, is suing Denel for R112m over the
project, are false.

According to Kgobe, Denel reached a settlement agreement on outstanding issues with
Patria in December 2022.
“All legal actions by Patria were halted in terms of this agreement and Patria continues
to support Denel in the execution of the contract,” he explained.

The state-owned arms company said 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 in 2013.

The Badger is a new generation 8×8 infantry combat vehicle designed to provide
soldiers with adequate protection and offensive firepower in high-intensity warfare. It
also enables them to dismount from the vehicle and freely interact with civilians during
peace-enforcement operations.

Kgobe conceded that 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 not at risk,” Kgobe stressed.
“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, according to Denel, is a critical component of the broader
moves to modernise the SANDF and ensure its operational readiness.