PRETORIA - SA state arms company Denel has asked the government for a R2.8 billion ($200 million) cash injection to help it emerge from a financial crisis and secure lucrative export deals, its chief executive said.
In an interview with Reuters, Danie du Toit said he hoped the cash injection would be announced this month and that the funds would arrive in September or October.
He added that Denel would not sell equity stakes to Saudi Arabia’s state defence firm SAMI, which made a $1 billion bid for a partnership last year.
Solidarity serves Denel with demand to take legal action over wage woes
In late June, Trade union Solidarity said it had served state arms manufacturer Denel with a demand under section 165 of the Companies Act to take immediate legal action against those responsible for the financial muddle it finds itself in.
The demand was served after Denel earlier this week indicated it could only pay its employees 85 percent of their salaries this month. Hours later, Public Enterprises minister Pravin Gordhan said staff would be paid their full salaries after a money lender came forward to extend the necessary funds, although he declined to name the lender.
Solidary said it had provided Denel with a file containing various irregularities in April 2018, which led to some dismissals at the state-owned company.
The trade union said it was now using section 165 to demand that the state-owned company take legal action against those responsible for any wrongdoing.