JOHANNESBURG - State-owned arms maker Denel said on Friday it was expecting recapitalisation during the third quarter of the year following ongoing discussions with the Department of Public Enterprises and the National Treasury.
During the 2019 Appropriations Bill debate last week, finance minister Tito Mboweni announced the commitment to recapitalise Denel as it tries to mitigate its liquidity challenges.
The cash-strapped entity applied for recapitalisation which was provided for in the contingency reserve in the February 2019 budget vote.
Denel has been struggling to pay a certain portion of its employees' salaries for June and July as maladministration and corruption left its balance sheet in the red.
The company has since initiated several forensic investigations into alleged fraud and misappropriation of funds conducted by its previous management, and this will soon result in legal action to recover losses.