Fin24 reports that Minister of Finance Tito Mboweni’s commitment to recapitalising Denel gave the state-owed arms manufacturer the confidence to announce on Wednesday that would be able to pay July salaries on time.
The utility released a statement on Wednesday to that effect. In an earlier statement on Monday, the company said it could not guarantee the payment of salaries. But, in the latest statement, Denel group CEO Danie du Toit said Mboweni's commitment to recapitalising Denel was a welcome development. "These steps will contribute greatly to the financial turnaround of the company and the restructuring of our business which has been initiated by our new Board," said Du Toit. The details of the bridging finance mechanism through which Denel has accessed the funding to pay salaries remains confidential. The statement also indicated that Denel would continue to dispose of non-core assets and establish strategic equity partnerships across all of its divisions.
- Read the full original of Khulekani Magubane’s report on the above at Fin24
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