Public Enterprises addresses Denel’s liquidity woes

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The  Department of Public Enterprises says it has made a number of interventions at Denel to address liquidity challenges.

The department says this has been a difficult year for the company as it was unable to meet its financial obligations including payment of salaries.

It also lost a R6 billion contract because it couldn’t raise the required bank guarantee.

Deputy Minister Phumulo Masualle says they are disposing of some assets in which Denel has a stake, to address their financial constraints.

“Some of the assets for which Denel has a stake in were let off. (We’ll) provide them with much liquidity. We have approved selling a stake that will bring up to R150 million or more that would help to deal with liquidity challenges at Denel.”

Denel’s financial woes are discussed:

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Source: sabcnews