Carol Paton Editor at large

The National Treasury says it is unable to assist state-owned arms manufacturer Denel with emergency funding to pay salaries as it has no legal mechanism to do so.

Denel, which is the main supplier to the defence force and is recognised as strategically important to the country by the government, is in the throes of a liquidity crisis and has been unable to pay full salaries since May. The cash crisis has the potential to sink Denel as work is postponed, customers lose confidence and orders are cancelled...

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