BusinessLive reports that embattled state-owned arms manufacturer Denel, which is struggling to pay staff salaries, says it will defend a liquidation bid from Saab Grintek Defence if necessary, but will seek to resolve the payment dispute amicably.
Saab Grintek Defence, which is majority owned by Sweden’s Saab group, has approached the High Court in Pretoria to argue that Denel is insolvent. According to media reports, Saab has made R126m in claims relating to a contract for the production of fire-control computers for vehicles. Denel said in a brief statement on Tuesday that it was engaged with Saab Grintek, and “if need be, will engage its legal advisers to defend this matter”. Denel, one of the many state-owned enterprises (SOEs) that have been embroiled in allegations of state capture, has been running at a loss for years. It has also struggled to pay salaries. The Democratic Alliance (DA) argued in late May that Denel’s decision to only pay its employees 20% of their May salaries was proof that it must be placed in business rescue as a matter of urgency.
- Read the full original of the report in the above regard by Karl Gernetzky at BusinessLive
- Read too, Denel seeking to negotiate with Saab Grintek Defence over liquidation application, at Engineering News
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