25 June 2019

South Africa: Denel Working to Ensure Salaries Paid in Full

The management of Denel is working tirelessly to ensure that the delayed payment of portions of salaries is reimbursed to employees as soon as possible, says Denel Group Chief Executive Officer Danie du Toit.

This follows a decision taken by the state-owned company that employees will only receive 85% of their salary obligation for June 2019.

"Due to ongoing liquidity challenges we are now faced with the unfortunate reality that the company is not in a position to fulfil the 100% salary obligation for June 2019," he said.

Those staff members who bank with First National Bank received their 85% salaries today, 25 June 2019 and other employees on Wednesday 26 June 2019.

Du Toit said the management of Denel acknowledges the inconvenience caused by the decision, in particular the late communication.

However, at the time the decision was made, the company had no alternative but to go this route.

The Shareholder, the Board and management are continuously working to find sustainable solutions to the liquidity crisis facing Denel.

Government is cognisant of the fact that Denel is highly leveraged and in need of additional liquidity to rebuild the business.

Du Toit assured Denel employees that management will always strive to meet the company's obligations to them in line with their employment contracts.

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