In a memo to staff, Mxolisi Makhatini CEO of Denel Land Systems, indicated that staff would receive a mere 20% of their salaries in May, along with medical aid contributions and part of their pension payments.
Mkhatini added that the situation would not likely be resolved soon: ‘As the company’s liquidity status worsen (sic), the payment of salaries for the upcoming months will continue to be a challenge to honour.’
He appealed for ‘extra ordinary understanding and continuous support as we navigate through the unprecedented storm’.
Denel is South Africa’s state-owned armaments firm, and has been beset by financial troubles for some time. Staff have had to accept only a portion of their salaries for a year; the last full payment was in May 2020.
Public enterprises minister Pravin Gordhan recently pointed out that Denel owed its employees some R500 million in salaries. ‘The business has subsequently experienced a loss of critical skills to both domestic and foreign companies,’ he said.
[Image: BoonDock, https://commons.wikimedia.org/w/index.php?curid=38402967]