Denel’s decision to only pay its employees 20% of their May salaries is proof that the SOE must be placed under business rescue as a matter of urgency.
There is clearly no other way forward for the arms manufacturer which is fast becoming commercially unsustainable. The DA is of the view that should a business rescue process not be initiated, the entire entity will collapse. This will not only compromise South Africa’s national security but also the thousands of jobs in its value chain.
Bailouts and government guarantees will do nothing to turn the tide for Denel as it will not address the root of its challenges. Which are the years of mismanagement, looting and capture.
Only a credible business rescue process which is independent and overseen by credible business rescuers will turns things around at Denel.
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