Denel can pay employees until March — but needs a long-term liquidity solution
State-owned arms manufacturer Denel has managed to pay creditors and employees over the past two months, but still needs to find a long-term solution to its liquidity crunch, the company’s executives said on Tuesday. Denel, which faced a cash crisis in December when there were reports it would not be able to pay salaries, is engaging with the Department of Public Enterprises and Treasury to address its liquidity problems and, in the short term, is investigating the possibility of selling assets to generate some cash. On Tuesday, Denel CEO Zwelakhe Ntshepe and chief financial officer Odwa Mhlwana replied to questions by members of Parliament’s public enterprises committee on recent developments in the company. Mhlawana said in an interview after the engagement with MPs that, initially, Denel was hoping to get a R1bn guarantee but, with the fiscal constraints facing the government at the moment, realised this would not be forthcoming. Consequently it has begun to look internally at th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.