Denel posts dismal financial results, again
A panel of forensic investigators is probing procurement irregularities at the state-owned arms manufacturer
Cash-strapped arms manufacturer Denel has said its board has appointed a panel of forensic investigators to probe procurement irregularities and is working with the Special Investigating Unit (SIU) to identify and root out any corruption in the company. It said irregular appointments of employees and business partners were also under investigation. The entity faces a number of challenges, which include a weak balance sheet, an unaffordable cost structure and an unsustainable creditor backlog, which has affected the operations negatively. All these combined have curtailed its ability to generate revenue. Denel, which has been weighed down by allegations of mismanagement and corruption, slipped into such a severe financial crisis that in December 2017 it needed a government guarantee to enable it to pay its workers and suppliers. Its year-end report was supposed to have been released six months ago. The arms manufacturer is one of the state-owned entities (SOEs) that delayed releasing...
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