State arms company Denel will pay its employees all their dues by Friday. Minister of Public Enterprises Minister Pravin Gordhan announced in parliament that a lender has come to the assistance of the company and full salaries will be paid.
On Monday the organisation indicated that the arms manufacturer notified its employees that they would receive 85 percent of their salaries.
Denel CEO Daniel du Toit says they are working on next month’s salaries.
“We have quite extensive government guarantees that we take to the finance community to secure funding against those guarantees, we have not fully utilised those government guarantees and of course we are responsible and careful on how we utilise those guarantees so essentially the bank is supporting us against those guarantees we are also actively begging with those in terms of bridging finance for the next two to three months.”
Minister Gordhan made the announcement during the debate on the State of the Nation Address. Gordhan says a Good Samaritan came to the rescue of Denel.
“The latest update is that a lender has come to the assistance of Denel and full salaries will be paid to all the staff at Denel there is no clearer example of the damaging effects of state capture than the financial strain and uncertainty that the 3500 Denel employees and the families will fell each month as a consequence of what we actually see.”
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