CASH CRUNCH
Denel cannot pay staff pensions and UIF
The state-owned arms maker awaits a R576m injection promised in the February 2020 budget
08 May 2020 - 05:10
Denel, the state-owned arms maker that received a R2bn government bailout in 2019, has told its staff that it cannot pay their April pensions, taxes and unemployment insurance fund (UIF) contributions due to cash-flow problems.
In a letter to staff, obtained by Business Day, Denel CEO Danie du Toit said the parastatal could run into a cash crunch in the next six months and paying salaries could become more difficult in future...
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.