DenelEngineering News reports that trade union Solidarity has submitted a memorandum containing possible solutions it believes will help defence group Denel overcome the challenges it faces.  

It was addressed to Denel CE Dr Danie du Toit and was compiled after Solidarity conducted a survey among its members at the group regarding the challenges the company faces, which include corruption, financial mismanagement and cash flow constraints.  Based on the survey, the Solidarity Research Institute (SRI) identified five broad concerns pertinent to the group’s current challenges.  According to the union’s deputy general secretary Johan Botha, the biggest concern revolved around the appointment, management and structuring of the firm’s human resources.  The concern which ranked second-highest in the survey related to suppliers and procurement.  “Members feel that the procurement process is driven by politics rather than by the quality of the products or services being obtained.  Many of the products could have been sourced in-house or otherwise through private companies,” Botha related.  Members also highlighted the level of red tape involved in processes currently in use in the organisation.  “Solidarity firmly believes it has a role to play to achieve a turnaround at Denel and, ultimately, its growth,” Botha posited.


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