Liquidity crunch pushes Denel to hatch plans with Treasury
Without a deal the cash-strapped state-owned arms manufacturer may not be able to pay salaries
State-owned arms manufacturer Denel continues to experience "severe liquidity challenges" and is working on a plan together with the Department of Public Enterprises and the Treasury to address them. Denel spokeswoman Pam Malinda said details of the plan would be shared once finalised "in due course". In December the liquidity crisis faced by Denel posed the risk that it would not be able to pay salaries. Former Denel chairman Daniel Mantsha resigned on Friday, four days after the appointment of Pravin Gordhan as minister of public enterprises. Gordhan was due to hold a meeting with Mantsha and Denel CEO Zwelakhe Ntshepe on Monday. The liquidity challenges might have been among the issues addressed. Mantsha’s resignation does not mean he is off the hook on the corruption charges that have been filed against him by the Organisation Undoing Tax Abuse (Outa).