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Two state-owned enterprises have told parliament that they are in financial trouble.
The newly appointed boards of armaments manufacturer Denel and regional airline SA Express say they have found dysfunctional organisations with serious liquidity problems.
They were appearing before the Portfolio committee on Public Enterprises, on the performance targets and turnaround strategies.
Acting Denel CEO, Mike Kgobe, outlined some of the problems they have inherited.
“Lapses in governance have resulted in the following: Denel being implicated in the State of Capture Report, the formation of Denel Asia – a joint venture – without requisite approval, liquidity crisis and suppliers withholding deliveries due to delayed payment,” he said.
