EWN reports that the United Association of SA (Uasa) has warned that Denel’s cash flow problems might result in more than 4,000 employees not being paid their December salaries.  

The state-owned company has experienced severe liquidity challenges resulting in the 13th cheques of staff members not being paid.  Uasa’s Willie van Eeden said Denel simply had no cash and went on to add:  “They have huge debts in terms of payments to their suppliers.  That leaves them with a serious cash flow problem, which is one of the reasons they did not pay the 13th cheque at the end of November.”  He also claimed that operations were grinding to a halt.  Denel did not respond to a detailed list of questions from EWN, but did confirm that the company was experiencing liquidity challenges.

• A short report by Barry Bateman is at EWN

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