The original article can be found here.
Article highlights:
- The DA on Monday said the decision by Denel to only pay its employees 20% of their May salaries was proof that the state-owned entity should be placed under business rescue as a matter of urgency;
- The DA is of the view that should a business rescue process not to be initiated, the entire entity will collapse;
- The DA adds that bailouts and government guarantees would do nothing to turn the tide for Denel as it would not address the root of its challenges, which were the years of mismanagement, looting and capture;
- Reports emerged on 30 May that Denel Land Systems said that honouring its wage bill in the next few months would be difficult as its cash problems continued.
