The once formidable arms manufacturer ‘Denel’ can’t even pay full salaries

Die Vryburger

The once formidable arms manufacturer ‘Denel’ can’t even pay full salaries
The once formidable arms manufacturer 'Denel' can't even pay full salaries

The state owned company, Denel, which has become world famous for its excellent military equipment, is like all the other state owned entities, balancing on the edge of the abyss.

A spokesperson has just announced that the staff will receive only 85% of their normal monthly remuneration this month. Employees and interested parties are equally shocked at the announcement, and questions are now being asked about what will happen in July if the manufacturer is already failing to meet its obligations.

A spokesman admits that Denel currently has a cash flow problem, but experts say the problem has been around for 10 years, and is just the tip of the iceberg.

The balance of the remuneration will be paid “as soon as possible” but no indication is given when it will be, and nothing is said about what will happen in July.

It was later reported that Minister Pravin Gordhan announced in parliament that Denel could borrow money to pay the salaries, but did not announce who gave the loan.

Read the original article in Afrikaans on Die Vryburger

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