More salary woes for Denel employees
Denel employees are facing yet another bleak month with the state-owned arms company struggling to pay salaries.
In a statement, Denel says “the company remains at risk of not being in a position to pay salaries for the month of July on time”.
At the same time, it gives an assurance that it is engaging banks in order to secure bridging finance to support the company.
Trade union Solidarity’s Anton van der Bijl says the announcement has hit employees hard.
This is not the first time the payment of salaries at Denel have been under threat.
Last month, the cash-strapped entity could only pay 85% of worker salaries due to cash flow problems.
It managed to pay the full amount after an intervention by Public Enterprises Minister Pravin Gordhan and a mysterious lender.
Finance Minister Tito Mboweni will table the Appropriation Bill in Parliament on Tuesday with Denel also set to receive a cash injection from Treasury.