3.4 Committee observations The Committee made the following comments: The Committee welcomed the efforts and improvements that were reported regarding the turnaround strategy of the Denel group. However, it was concerned that the group was still in a loss-making position and Denel Saab- Aerostructures (DSA) was still a risk for the group. . Concern was expressed regarding the lack of accountability on the part of the CEO due to his absence during the oversight and strategic plan of the Committee. . The Committee raised concern at the continued lack of orders from the Department of Defence and Military Veterans, and noted that the proposed solutions were not in Denel's control but depended on decisions from policy departments. . What were the prospects of building a competitive aerospace industry in South Africa? . Clarity was sought on claims and payments to Saab, and the R1.2 billion contracts and assurance was sought that there will be no comebacks in those contracts. . How would Denel emerge from the loss making post-2012? . Clarity was sought whether training that was done was voluntary or mandatory, and whether it was assisting to achieve employment equity targets. . Clarity was sought on how the non-executive director's remuneration was calculated and concern was expressed on the low meeting attendance of some board members. . Clarity was sought whether the CEO would be getting a golden handshake and on the reasons for his departure. . Clarity was sought on the JSE-listed subsidiary of Denel and where the patent of Denel was. . Concern was expressed at the manner in which the annual report was presented as it was silent on the achievements of the entity against pre-determined objectives. . From where were all the beneficiaries of the bursaries sourced in terms of province and cities? What strategies were in place to recruit from rural areas? . Information was needed on all the countries that Denel did business with (exports). . Where have all the skills gone to that were retrenched from the DSA? . Clarity was sought on the money that Denel had not received from government and how it had affected the performance of the entity. . There was a proposal for Denel to partner with Eskom and Transnet on developing surveillance technologies to protect copper cables. . What sort of products was Denel providing to the South African National Defence Force (SANDF)?