Reuters reports that state-owned arms manufacturer Denel did not pay senior staff their salaries in full in September, the company confirmed on Friday.  

The company has been grappling with a liquidity crunch after becoming embroiled in corruption scandals during former president Jacob Zuma’s scandal-plagued tenure.  “In September management salaries were not paid in full,” Denel spokeswoman Vuyelwa Qinga indicated, adding the cuts were due to “liquidity challenges”.  Executives were paid 80% of their salaries while specialists were paid 85%.  Qinga said regular employees were paid in full and that the company was working with the government to find a solution to its funding challenges.  In April, President Cyril Ramaphosa oversaw the appointment of a new board at Denel and the company subsequently suspended its chief financial officer over misconduct allegations.  According to labour unions, it is critical that Denel receives financial support – either via additional government guarantees or a capital injection.

• Read this report by Alexander Winning in full at Moneyweb

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