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The Democratic Alliance(DA) has described the National Treasury’s granting of a R1.8 billion bailout to embattled arms company, DENEL, as unsustainable.
DENEL says government’s decision to recapitalise the firm will help create a sustainable asset for South Africa.
DENEL CEO, Danie du Toit, says the cash is being made available due to progress in restructuring the business, among other things.
He says they have asked for a total of R2.8 billion and the balance of the money is likely to be considered by government in the next financial year.
However, in a statement, the DA has called for DENEL to the privatised, saying it’s no longer rational or feasible for government to have full ownership of the firm.
Read the DA statement below:
