necsa1BL Premium reports that the Nuclear Energy Corporation of SA (Necsa) is once again scrambling to pay salaries, this time by soliciting a loan from its only profitable subsidiary.  

It has made a loss every year since 2014.  Its next tranche of funding from the Treasury of R500m will only become available on 1 April.  Salaries for the past three months were paid from funds ring-fenced for particular projects.  In reply to questions, Necsa said it was considering all options available in relation to meeting its short-term financial obligations, key amongst those being payment of salaries and benefits due at the end of March.  Options would include requesting a loan from NTP Radioisotopes, its 100% own subsidiary, with clearly stipulated repayment conditions by the first week of April.  "This is done within the governance prescripts and inter-company financial exchanges are a common feature within the Necsa group,’’ the corporation claimed.  However, the Companies Act restricts loans between inter-related companies and requires that the directors of the company making the loan satisfy themselves that the company will pass a solvency and liquidity test.  NTP did not answer questions on whether the directors had approved the loan and what steps had been followed.

Get other news reports at the SA Labour News home page