Denel, like other state-owned entities, is lagging behind in paying creditors
The cash-strapped, state-owned arms manufacturer Denel had debts at the beginning of November of about R687m which were 30 days or older, Public Enterprises Minister Lynne Brown has said in a written reply to a parliamentary question. Of the debt owed to suppliers, R266m was older than 30 days; R86m older than 60 days; R185m older than 90 days; and R151m older than 120 days. In total, the company had 1,557 supplier invoices that had not been paid for 30 days or longer. Brown cautioned in her reply to DA MP Solly Malatsi’s question that at least 30% of creditors were common throughout the group and that the same supplier could be listed for each category of aging invoices as it delivered goods and services at different stages. Last month, Denel confirmed it was experiencing "severe liquidity challenges" which led to fears — subsequently allayed — that it would not be able to pay salaries at the end of the month. It said these liquidity challenges meant suppliers were not being paid. ...
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