Khashoggi killing complicates Saudi rescue bid for South African arms firm – World


JOHANNESBURG (Reuters) – Loss-making South African arms maker Denel has a problem as it fights to survive. Its potential saviour is Saudi Arabia, now drawing fierce criticism following the killing of journalist Jamal Khashoggi.

But after being mismanaged for years and tainted by a far-reaching influence-peddling scandal, state-owned Denel now needs the kind of help that the deep-pocketed Saudis can provide.

Reuters analysed five years of South African arms export data, spoke to former and current Denel employees and obtained internal Denel presentations on plans to rescue the company.

What emerged is that Saudi Arabia and its allies account for almost half of South Africa’s recent arms exports and a significant portion of future orders.

So rejecting Riyadh’s $1 billion offer could severely hamper…

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