1. Introduction The Portfolio Committee on Public Enterprises (the Committee) undertook an oversight visit to Denel on the 24 June 2011 as part of executing its oversight mandate as promulgated by the Constitution of South Africa. The purpose of the visit was to familiarise the Committee with the challenges faced by Denel Saab-Aerostructures (DSA), which is one of the business units at the Denel group. DSA has been recording financial losses for the past number of years, which had adversely affected the overall performance of the Denel group.