TimesLIVE reports that employees at state-owned arms manufacturer Denel learned on Tuesday that the company had paid their salaries, but not their pension contributions.
In a letter sent out by the "Denel retirement fund", to staff the fund said workers would not be able to claim benefits as monthly payments were not up to date. The letter read: "The fund will NOT be able to process or effect payment of members' benefits, which include death in service and medical disability benefits, resignation benefits, investment return updates and any other benefits payable." It also indicated that it would charge Denel interest on late payments. Solidarity's Johan Botha also received the letter on Tuesday afternoon and commented: ''Denel didn't pay (pension) contributions for a large part of the group. We are still waiting for the exact numbers." On 25 June, Denel group CEO Daniel du Toit announced that due to the ongoing liquidity challenges the company would be unable to pay employees their full salaries for June month and that only 85% would be paid. Following that, minister of public enterprises Pravin Gordhan announced that a "lender" had enabled the company to pay the rest of the staff salaries.
- Read the full original of Katharine Child’s report on the above story at TimesLIVE
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