Minister Gordon announced that Denel’s 3,500 employees will receive their full salaries for June.
(Photo: Minister Of Public Enterprises, pravin Gordon/ SABC News)
Minister of Public Enterprises, Pravin Gordon announced in Parliament that Denel employees will get paid.
This follows after the organisation notified it’s employees that they would receive 85 percent of their salaries. Minister Gordon made the announcement during the debate on the State of the Nation Address, on Tuesday that a lender has came to the rescue of the company and full salaries will be paid.
“The latest update is that a lender has come to the assistance of Denel and full salaries will be paid to all the staff at Denel there is no clearer example of the damaging effects of state capture than the financial strain and uncertainty that the 3500 Denel employees and the families will fell each month as a consequence of what we actually see”.
Meanwhile, Denel CEO Daniel du Toit says they are working on next month’s salaries.
“We have quite extensive government guarantees that we take to the finance community to secure funding against those guarantees, we have not fully utilised those government guarantees and of course we are responsible and careful on how we utilise those guarantees so essentially the bank is supporting us against those guarantees we are also actively begging with those in terms of bridging finance for the next two to three months.”