Business Report writes that state-owned arms manufacturer Denel has told its staff it would be unable once again to pay their salaries, this time for June, as its liquidity position remained dire on competing priorities and declining sales.
The company indicated to employees last weekend that it did not have sufficient cash as various plans slowly taking shape have yet to improve sales and cash inflows. It said it anticipated positive results in the next three to six months. Denel said that at present “we do not have sufficient cash in our coffers and we do not foresee being able to honour our financial obligations for the month of June. Unfortunately, this includes employee salaries, related statutory and third party payments.” Various divisions of the state-owned enterprise have not been able to meet salary obligations for over a year, with the amounts of remuneration owed running over R500 million. Denel has a court date for later this month to clarify its liquidity position against attachment orders obtained by trade union Uasa and other creditors. Early this month, SAAB Grintek Defence approached the high court in Pretoria for the winding-up of the company.
- Read the full original of the report in the above regard by Banele Ginindza at Business Report
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