Arms manufacturer Denel says the turnaround plan its Board has introduced remains at the core of its strategy to return the company to sustainability.
Struggling state-owned defence company, Denel, has reported an operating loss of R1.9 billion for the year to March 31, it said on Friday.
State arms company Denel has confirmed receiving a R100-million deposit from the Republic of Chad for the purchase of 40 military Casspirs – vehicles used for the transport of troops – but never delivered on the contract.
South Africa’s struggling state-owned defence company Denel aims to begin disposing of equity stakes and exiting loss-making businesses within months as part of its turnaround strategy, it told a parliamentary committee.
South Africa’s Denel could see some R30 billion ($1.97 billion) in deals over the next two years which should help it recover after struggling to pay salaries and relying on bailouts, the state arms firm said on Thursday.
The Democratic Alliance has described the National Treasury’s granting of a R1.8 billion bailout to embattled arms company, DENEL, as unsustainable.
Treasury has granted embattled arms company, DENEL, a R1.8 billion bailout. DENEL says in a statement that government’s decision to recapitalise the firm will help create a sustainable asset for South Africa.
South Africa’s Denel expects to receive government support in the third quarter of this year as ministers are satisfied with how its planned turnaround is going, the state defence company said on Friday, adding it saw potential to cut more costs.
The Liberated Metalworkers Union (LIMUSA) is calling for the resignation of DENEL’s Group Chief Executive Daniel du Toit, after the arms manufacturer notified its employees that they would receive only 85% of their salaries for June.