Solidarity said it had served 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. Picture:Reuters/Siphiwe Sibeko

Cape Town - Trade union Solidarity on Friday 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.

“If the alleged irregularities are not investigated, and/or if no legal action is taken because of the proven irregularities, we may take legal action against the responsible persons in Denel’s stead," said Anton van der Bijl, the union's head of legal services.

"The time has come to hold people accountable for their wrongdoing and to bring them to book."

Earlier this year, the State capture inquiry heard evidence how the Gupta family had tried to influence its executives to sway them in favour of a joint venture with a company, owned by an associate of the politically connected family. 

African News Agency (ANA)