ANA reports trade union Solidarity on Friday indicated that it had served Denel with a demand under section 165 of the Companies Act to take immediate legal action against those responsible for the financial predicament the state-owned arms manufacturer found itself in.  

The demand was served after Denel earlier in the week indicated it could only pay its employees 85% of their salaries in June.  Hours later, Public Enterprises Minister Pravin Gordhan said staff would be paid their full salaries because an unnamed money lender had come forward to extend the necessary funds.  According to Solidarity’s Head of Legal Services, Anton van der Bijl, under section 165 of the Act Solidarity was entitled to demand that Denel should investigate irregularities and take legal action within 60 days after such a demand was served on it.  “If the alleged irregularities are not investigated, and/or if no legal action is taken because of the proven irregularities, we may take legal action against the responsible persons in Denel’s stead.  The time has come to hold people accountable for their wrongdoing and to bring them to book,” Van der Bijl commented.

• Read the full original of the report on tie above story at Independent News
• Read Solidarity’s press statement on this issue at Politicsweb

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