Just in time: Denel will be able to pay June salaries | Business | M&G

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Public Enterprises Minister Pravin Gordhan announced on Tuesday that employees at embattled state-owned arms manufacturer Denel will receive their full salaries this month, after a lender came to the entity’s rescue.

Group chief executive Danie du Toit had said earlier on Tuesday that the company had no alternative but to cut back on salaries and would only be able to pay staff 85% of their salaries.Du Toit had said: “Due to ongoing liquidity challenges we are now faced with the unfortunate reality that the company is not in a position to fulfil the 100% salary obligation for June 2019.”

The public enterprises minister noted that what is happening at Denel is an example of the impact of state capture on state-owned enterprises and their employees. “Denel, our producer of military and aerospace equipment, is a crucial and strategic state entity that was substantially harmed by state capture.”

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Who is the lender and why the name is withheld ? Is this how Pravin Gordhan is privatizing Soe in this case Denel. Only time will tell

Who is the lender? And what are his terms.

If a lender lends, does that constitute ‘rescue’. That’s the thing SOE’s don’t get. Creating more debt is a race to the bottom, the only way forward is to turn SOE’s into profitable businesses. Government does not have skill / ability to manage SOE’s. Should be liquidated, sold.

And you don't see something wrong with that or you want to paint corrupt pravin as a saviour?Who is the lender,what are the conditions for this,how will they be paid,when was this negotiated bcos the news broke on the even of pravin's speech?There was no crisis this was staged

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State-owned Denel unable to pay full salaries to staff | IOL Business ReportThe embattled state-owned entity Denel is unable to pay full salaries to their staff this month. busrep Management could take one for the team.
Source: IOL - 🏆 46. / 51 Read more »