Today's Labour News

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DenelBusinessLive reports that state-owned arms manufacturer Denel has managed to pay creditors and employees over the past two months, but still needs to find a long-term solution to its liquidity crunch, the company’s executives said on Tuesday.  

Denel, which faced a cash crisis in December when there were reports it would not be able to pay salaries, is engaging with the Department of Public Enterprises and Treasury to address its liquidity problems and, in the short term, is investigating the possibility of selling assets to generate some cash.  On Tuesday, Denel CEO Zwelakhe Ntshepe and chief financial officer Odwa Mhlwana replied to questions by members of Parliament’s public enterprises committee on recent developments in the company.  Ntshepe said Denel did not have a problem paying salaries in January and would not have a problem paying them in February and March, "but the issue of liquidity in Denel is a serious matter which has existed for a long time.  Denel has never really made serious money".  "We are focusing on creating solutions to the inability to create sufficient cash flows to sustain the business,” Mhlwana said.

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