The Committee was concerned that Denel had failed to meet its targets and was also troubled by the audit opinion, which put doubt on Denel as a going concern. The Committee felt that drastic measures needed to be taken to turn the company into a profitable one, especially its Aerostructures Division, which appeared to be the one responsible for much of the losses. The Committee pointed out that there were instances of litigation facing SOEs such as Alexkor, Safcol, Eskom (CEO), SAA and Transnet (pensioner).The Committee welcomed an updated report on all these cases by early 2011.