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BusinessLive reports that state-owned arms manufacturer Denel has indicated that it is unable to pay its employees their full salaries this month.
“Due to the ongoing liquidity challenges, we are now faced with the unfortunate reality that the company is not in a position to fulfil the 100% salary obligation for June 2019,” Denel group CEO Daniel du Toit indicated in a statement. Employees will receive 85% of the salary obligation for June 2019. Du Toit said management was working “tirelessly” to pay the rest of the salaries soon and went on to indicate the following to staff: “We acknowledge the inconvenience caused by this, in particular the late communication to you. However, at the time this decision was made, the company had no alternative but to go this route.” Fitch downgraded Denel’s long-term credit rating in March. Denel recorded a loss of nearly R2bn in the past financial year. In the 2017/2018 financial year it suffered a net loss of R1.8bn on a 38% decline in revenue to R5bn from R8bn the previous year.
- Read the full original of the report by Nico Gouws on the above story at BusinessLive
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