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BL Premium reports that Denel, the broke state-owned arms manufacturer on the brink of collapse, has suggested that instability in Europe and elsewhere due to the Ukraine war could drive its recovery as countries move to boost their defence capabilities.
Briefing a joint meeting of parliament’s public enterprises committee and the select committee on Denel’s poor financial position, company executives highlighted that the geopolitical instability in Europe and other parts of the world could give impetus to significant defence industry requirements. Denel, one of many parastatals struggling to recover from state capture, had huge losses in recent years and is struggling to meet its financial obligations, including paying suppliers and staff. The latter led to a mass exodus of skilled personnel that further weakened its ability to deliver on key revenue-generating projects. Denel CEO William Hlakoane told MPs there was still significant interest in the company’s “battle-proven intellectual property”. “Despite its financial difficulties, there is still appetite by numerous countries and companies to acquire Denel’s products or form deeper strategic relationships,” he claimed. Hlakoane said Denel should be able to restore critical capabilities by either attracting skills directly or through support of the local industry. Some MPs scoffed at Denel’s submission, saying it was scant on detail and nothing more than a wish list. “Denel cannot fulfil its order book, no matter how big that order book is ... we have no detail of what is going to come in, what is going to be addressed,” said DA MP Ghaleb Cachalia, pointing to the mass exodus of skilled staff frustrated by the lack of financial security.
- Read the full original of the report in the above regard by Bekezela Phakathi at BusinessLive (subscriber access only)
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