DenelThe Citizen reports that state-owned arms manufacturing company Denel is feeling the consequences of loss of skills in its finance department and is unable to correct its financial statements for 2019/2020.

Staff left the company in droves after they didn’t receive full salaries over the past 18 months. Denel said in a Sens statement last week that it was still working on correcting the financial statements in respect of which it received a disclaimer from the auditor-general. The company indicated in the statement that while it still engaged with the external auditors and had started working on a consolidation tool, work had slowed down “due to delays within Denel as a result of the loss in skills within the finance department”. Denel pointed out that it has formulated a new operating model that will deliver a streamlined and refocused company to be financially sustainable and profitable in the next five years. The plan will be supplemented by further reductions in the executive cost structure, as well as the implementation of a shared services model in areas such as supply chain management, human capital, IT and finance to allow for common enterprise resource planning to ensure improved financial control and reporting.

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