Denel’s woes under the spotlight in parliament

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Members of the Portfolio Committee on Public Enterprises and the Select Committee on Public Enterprises and Communications have suggested that a meeting should be held with the departments of Police and Defence to hear the reasons why they are not procuring their supplies from arms manufacturer, Denel.

They also believe a meeting with the Special Investigating Unit is necessary to probe the alleged theft of intellectual property and acts of corruption in the organisation.

Denel says it owes workers R 636-million in outstanding salaries and suppliers, R900-million. Interim CEO, William Hlakoane says their year-to-date balance sheet shows that Denel is technically insolvent and has insufficient cash to meet operational requirements.

The members of the two committees say Denel requires financial assistance from government for its financial recovery. They say it is government’s legal responsibility to cover its liability as the shareholder.

Members say funding is required for Denel’s working capital and operational costs.

Continued financial meltdown at Denel:

Denel says it lost more than 70 employees due to non-payment of salaries

 Denel says it has lost more than 70 employees in the technical division due to the non-payment of salaries. This comes as Denel is continuing to battle with liquidity challenges.

Hlakoane, says the non-payment of salaries has severely affected Denel.

“Due to this non-payment of salaries, we have seen an exodus of employees. Some of them in the business are taking us to court. Even those who have left the company are taking us to court. What is more concerning is that the most exit that we have experienced are mainly in the technical wheel, 25 artisans and about 23 engineers. So if you look at the figure, we are talking at more than 71 people that had left in the technical space.”