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BusinessLive reports that cash-strapped state-owned arms manufacturer Denel has told employees that it remains at risk of not being able to pay salaries for July.
In June, the company said it could only pay 85% of salaries for that month due to cash-flow problems. Soon after, the public enterprises minister Pravin Gordhan announced that a lender had come to the arms manufacturer's assistance and full salaries were paid. It then emerged that staff at Denel had been paid their salaries, but their pension contributions had not been paid over to the company pension fund. The company on Monday said group CEO Danie du Toit had indicated to employees that Denel was in constant talks with the banks to secure bridging finance to support it. Du Toit has apologised for the stress and anxiety this has caused staff and their families. He said Denel noted the positive sentiments expressed by Gordhan and his deputy during the recent budget vote and the statements from finance minister Tito Mboweni regarding the possible recapitalisation of the company. Despite this, Denel said it should be expected that the next few months would be "very tough".
- Read the full original of Genevieve Quintal’s report on the above at BusinessLive
Get other news reports at the SA Labour News home page