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DenelAt a press briefing on Thursday, trade union Solidarity revealed in a report entitled Denel Dossier that top management at arms manufacturer Denel received salary increases of up to 60% last year.  

These increases were awarded at the same time when the state-owned aerospace and defence technology conglomerate did not have the necessary funds to pay employees their full salaries in December.  Noting that Denel had been bailed out of financial difficulties by the government through several assistance packages, Dirk Hermann, Solidarity CEO, pointed out that the company had threatened to retrench hundreds of workers and, in spite of its financial crisis, had awarded top management performance bonuses of 100%.  According to the dossier, the weapons manufacturer deducted amounts from employees’ salaries as part of a savings plan, but because Denel’s financial position was in such dire straits the money was used to “finance mismanagement”.  In the report, Solidarity requests that Denel’s top management, including the Group CEO, Zwelakhe Ntshepe, and the CFO, Odwa Mhlwana, be suspended pending a forensic investigation.  The union further requests that financial mismanagement as alleged, circumvention of tender procedures, and contempt for internal policy be investigated.  Hermann indicated that the Denel Dossier would be handed to Public Enterprises Minister Pravin Gordhan with the view to further action.

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