Johannesburg - Labour union Solidarity said on Wednesday it had served urgent court documents to force struggling state-owned arms maker Denel to pay the unemployment insurance levy and taxes deducted from employees’ salaries.
Solidarity also launched a process in terms of the Companies Act to investigate former Denel board members for mismanagement and corruption with a view to possible prosecution.
The move follows cash-strapped Denel's announcement that it could only pay a certain portion of its employees’ salaries for June and July.
"The victims of reckless mismanagement and state capture are real people with families and emotions," Solidarity chief executive Dirk Hermann said in a statement.
"Employees’ salaries are used to subsidise cash flow. However, Denel went even further and withheld compulsory income tax payments to the South African Revenue Service, even though these payments were indicated on the employees’ pay slips."