Vektor was part of the Denel group. The government funded Denel(Armskor)to develop weapons for the SADF during the apartheid years. When the ANC took over there was no need for a lot of the companies in the Denel group, which was subsequently closed down.

Most of the companies in the Denel group also did business with the private sector to help offset the cost to the government. It was not a private co, it was a state owned co.
jvw explains the rest of the reasons, if you don't bring in the money there is no reason to keep it going. Sad but true. The people who is lucky enough to have one, have a very good action.