Denel will turn around, and we will pay salaries - CEO | Fin24
 
  • Trump and Tariffs

    Face-to-face trade meetings with China on the horizon.

  • Peter Moyo

    What is next for Old Mutual and its on-and off-again CEO Peter Moyo as legal manoeuverings continue?

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Denel will turn around, and we will pay salaries - CEO

Jul 24 2019 17:56
Khulekani Magubane, Fin24

Minister of Finance Tito Mboweni’s commitment to recapitalising Denel gave the arms utility the confidence to announce on Wednesday that would be able to pay July salaries on time.

The utility released a statement on Wednesday saying it would be able to pay salaries for the month of July on time.

This comes after a statement on Monday, in which the utility said it could not guarantee the payment of salaries.

In the statement, Denel group CEO Danie du Toit said Mboweni's commitment to recapitalising Denel was a welcome development.

"These steps will contribute greatly to the financial turnaround of the company and the restructuring of our business which has been initiated by our new Board," said Du Toit.

The details of the bridging finance mechanism through which Denel accessed the finding to pay salaries remains confidential.

Du Toit confirmed that Denel secured July salary payments for employees following earlier concerns that salaries might not be paid out in full at the end of this month.

"The continued commitment of employees to Denel is highly appreciated and supports the wider efforts to turn the company around," he says.

The statement said Denel would continue to dispose of non-core assets and establish strategic equity partnerships across all of its divisions.

NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...