Johannesburg – Denel has told its staff it would be unable once again to pay their salaries, this time for June, as its liquidity position remained dire on competing priorities and declining sales.
The state-owned arms manufacturer told its workers last weekend that it did not have sufficient cash with various plans that had been undertaken slowly taking shape but yet to improve sales and the cash inflows.
It said it anticipated positive results in the next three to six months.
“However, at this stage, we do not have sufficient cash in our coffers and we do not foresee being able to honour our financial obligations for the month of June” said Denel.
“Unfortunately, this includes employee salaries, related statutory and third party payments.”
Various divisions of the SOE had not been able to meet salary obligations for over a year, with the amounts of remuneration owed running over R500 million.
According to the communique, Denel was working extremely hard to unlock and to finalise sales for the month of June.
The company has appointments with the courts later this month to clarify its liquidity position against the existing attachment orders obtained by the United Association of South Africa and other creditors.
