Denel unable to pay salaries
Denel unable to pay full salaries this month
State-owned arms manufacturer Denel is unable to pay its employees their full salaries this month.
“Due to the ongoing liquidity challenges, we are now faced with the unfortunate reality that the company is not in a position to fulfill the 100% salary obligation for June 2019,” Denel group CEO Daniel du Toit said in a signed letter on Monday.
“Employees will receive 85% of the salary obligation for June 2019,” said the letter.
Du Toit said management was working “tirelessly” to pay the rest of the salaries soon.
“We acknowledge the inconvenience caused by this, in particular the late communication to you. However, at the time this decision was made, the company had no alternative but to go this route.”