State arms company Denel will pay its employees all their dues by Friday. Minister of Public Enterprises Minister Pravin Gordhan announced in parliament that a lender has come to the assistance of the company and full salaries will be paid.
“The latest update is that a lender has come to the assistance of Denel and full salaries will now be paid. There is no clearer example of the damaging effects of state capture than the financial strain and uncertainty the 3 500 Denel employees and their families may face each month …”
He adds that Denel is a crucial and strategic state entity that was substantially harmed by state capture. Watch below the extract of Minister Gordhan SONA Debate:
Earlier, the organisation indicated that the arms manufacturer notified its employees that they would receive 85 percent of their salaries.
Denel CEO Daniel du Toit says they are working on next month’s salaries.
“We have quite extensive government guarantees that we take to the finance community to secure funding against those guarantees, we have not fully utilised those government guarantees and of course we are responsible and careful on how we utilise those guarantees so essentially the bank is supporting us against those guarantees we are also actively begging with those in terms of bridging finance for the next two to three months.”
Note: This article was modified on Wednesday, 26 June 2019.