BusinessLive reports that public enterprises minister Pravin Gordhan announced on Tuesday that Denel’s 3,500 employees would receive their full salaries for June.  

Earlier on Tuesday, it emerged that Denel could only pay 85% of salaries for June due to cash-flow problems.  On Tuesday evening, however, Gordhan said during a debate on the state of the nation address that a lender had come to the assistance of Denel “and full salaries will now be paid”.  Gordhan’s spokesman indicated that the terms of the loan, which was granted by a commercial bank, were confidential.  Denel, one of several state-owned enterprises (SOEs) mired in allegations of corruption and state capture, has found itself in a deep financial crisis, needing a government guarantee to enable it to pay salaries and suppliers.  Other SOEs facing major financial problems include Eskom, SAA and the SABC.  Denel recorded a loss of nearly R2bn in the past financial year.  Cosatu spokesperson Sizwe Pamla said Denel’s challenges represented the continued and “alarming meltdown of the SOEs”.

• Read the full original of Claudi Mailovich’s report in the above regard at BusinessLive

Get other news reports at the SA Labour News home page