There is still no end in sight to the financial meltdown plaguing state-owned arms manufacturer Denel.
Many workers have still not been paid last month’s salaries, while others have only received between 30 and 50% of their pay. Denel has been in a severe financial meltdown for several years.
Trade union, Solidarity is calling for urgent government intervention.
“The situation at Denel has become even more critical than it was in the past. Management and the Board don’t seem to have any answers, there seems to be a need for political action and decisions by our political leaders. They need to decide one of two things, they should either recapitalise Denel from a government perspective or they should take a decision that Denel can be privatised,” says Solidarity Spokesperspon Helgard Cronjé.
It has suffered a cumulative loss of around R5 billion in the last three years. This comes after losing lucrative contracts in the Middle East and North Africa due to a change in geopolitical factors. The dire financial situation continues to take a toll on Denel employees.
Source: SABC News (sabcnews.com)