The state arms manufacturer failed to pay staff pensions, tax and UIF for April, and the next few months aren’t looking good for salaries
Embattled state arms manufacturer Denel says the global lockdowns, implemented to to curb the rapid spread of the coronavirus, are the primary reason it failed to pay staff pensions, tax and unemployment insurance fund monies for April.
Responding to questions from Business Day, CEO Danie du Toit said: “The pandemic will have significant negative impacts for the entire local defence and technology sectors and will be felt by Denel for some time.”Both Covid-19 and SA’s investment downgrade to junk status will not disappear soon, and public-sector finances will be under strain for a lengthy period.”
Denel, a pillar of the country’s defence industry, is part of a long line of state-owned enterprises that are either in dire financial straits or on the verge of collapse after years of mismanagement and corruption due to state capture.
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