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Fin24 reports that trade union Solidarity announced on Monday that it would serve state-owned arms manufacturer Denel with court papers on Wednesday and announce further legal action thereafter.
Denel's ability to pay staff salaries has been hanging in the balance, with the company promising last week – after some uncertainty – that it would be able to pay salaries for the month of July. The company has used bridging finance to pay salaries, but has also received a commitment from government for recapitalisation by late September. Solidarity will announce the details of its court action at a briefing on Wednesday. The union's chief operating officer Dirk Hermann said the legal action would include an urgent court application with a view to prosecution, in light of a dossier the union submitted to Denel regarding alleged corruption and mismanagement. "The purpose of the legal action is to protect the money of Denel employees as well as the taxpayer’s money,” said Hermann. In the statement, the union also said it was planning on taking similar steps against former directors of power utility Eskom.
- Read the original of the report on the above by Khulekani Magubane at Fin24
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