Lynne Brown. Picture: ESA ALEXANDER
Lynne Brown. Picture: ESA ALEXANDER

The government has not ruled out selling a stake in state-owned arms manufacturer Denel, Public Enterprises Minister Lynne Brown has said.

Denel has recently been faced with a cash crunch which gave rise to fears it would not be able to pay salaries. The fears were subsequently allayed.

In a written reply to a parliamentary question by EFF MP Marshall Dlamini, Brown stressed that Denel had not, as yet, engaged with any companies regarding the sale of a stake.

"The government has no plans, at this stage, to dispose of any equity stake in Denel. However, in reviewing and optimising Denel’s capital structure, such a decision cannot be ruled out," Brown said. "Denel has an order book with the United Arab Emirates and recently entered into a memorandum of understanding with Qatar for possible future business prospects."

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