Minister of Public Enterprises Minister Pravin Gordhan says Denel employees will receive their full salaries. He was speaking in the National Assembly during the debate on the State of the Nation Address.
Earlier, Denel indicated that the arms manufacturer had notified its employees that they would receive 85% of their salaries on Tuesday and the balance would be paid in a week’s time.
Gordhan says a Good Samaritan came to the rescue of Denel.
“The latest update is that a lender has come to the assistance of Denel and full salaries will be paid to all the staff at Denel. There is no clearer example of the damaging effects of state capture than the financial strain and uncertainty that the 3500 Denel employees and the families will fell each month as a consequence of what we actually see.”
Tuesday, Denel says it cannot guarantee its workers a future at the state arms manufacturing company because of its worsening cash-flow problems.
Group Chief Executive Daniel du Toit says the situation the state arms manufacturing company is in is as a result of state capture.
“We’ve quite a challenging liquidity crisis. Most months over the last 6 months since I came on board, we have finalised salary payments in the last days up to the 25th of the month. In this month unfortunately we could not secure all the funding we need I think we will have it in the next 2-3 days so in principle we can pay full salaries but it will be late and we thought its better to communicate it with the staff.”