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BL Premium reports Solidarity and Uasa are scheduled to appear in the Labour Court on Thursday to ask it to hold the 15 directors of Denel, including the former CEO, in breach of the law for ignoring a court order.
According to the trade unions, the directors of the state-owned arms manufacturer should be held in contempt of court for their failure to pay staff salaries as ordered by the Labour Court in August. The court order instructed Denel to pay outstanding monies due to union members, who had received only 20% to 60% of their salaries between May and July. Denel is in a dire financial position and has argued in legal papers that it has lost R5.4bn since 2017. Uasa’s Johan van Niekerk explained that the union was holding the board of directors and managers to account for the first time as “it is their fiduciary responsibility to comply with the law”. Solidarity’s Helgard Cronje said it was a “rule of law” issue because companies and boards of directors needed to obey court orders. In his affidavit before the court, Cronje alleged that the executive directors have been earning full pay and have since October refused to answer questions he posed in that regard. In response, Denel’s new CEO Talib Sadik argued that the directors could not be held liable for the non-payment of salaries as the government, as shareholder, had failed to provide funding for the manufacturer.
- Read the full original of the report in the above regard by Katharine Child at BusinessLive
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