City Press reports that employees at state-owned enterprise Denel are unhappy with the R1.5 million “sign-on” bonus paid to CEO Danie du Toit.  He joined Denel on 14 January and the cash-strapped arms manufacturer paid the money to him as an incentive.  

However, according to at least three employees, one of whom is an executive, the matter was raised by the majority union at the company, the Liberated Metalworkers’ Union of SA (Limusa), at a recent meeting about salary payment shortfalls.  Limusa general secretary Mawonga Madolo also issued a statement about the R1.5 million, as well as a R600,000 relocation fee Du Toit was allegedly paid.  According to a document dated 25 February, seen by City Press, Du Toit was paid a R1,523,978 “non-pensionable allowance”.  His annual package is R5 million.  Denel spokesperson Pam Malinda declined to confirm or deny the matter.  Following the recent bailout by a commercial bank, Denel issued a statement saying it welcomed the confidence shown by government.  Du Toit indicated that the company was busy with a comprehensive programme to restore good corporate governance, reduce costs and find new opportunities for growth, especially in export markets.  This report goes on to briefly outline the financial state of three other state-owned enterprises (SOEs), namely the SA Post Office, SAA and the SABC.

• Read the full original of Lesetja Malope’s report on the above story on page 5 of City Press Business of 30 June 2019

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