Unless struggling state-owned arms manufacturer Denel gets a bailout from National Treasury, it will no longer be able to carry out its mandate, that’s according to Defence Minister Nosiviwe Mapisa-Nqakula.
The minister was answering a question from the DA’s defence spokesperson, Kobus Marais.
Denel, faced with a liquidity crisis, has struggled to pay salaries for months and fulfil contracts.
It was brought to its knees by mismanagement during State Capture. According to Mapisa-Nqakula, the defence department’s performance is being hindered by Denel not having money.
The minister has highlighted that the lack of a significant bailout poses a risk to the company meeting its contractual obligations to Armscor, and it may collapse entirely.
In other news – Somizi to spend quality time with his bestie Vusi Nova
Vusi Nova and Somizi have a long and very tight relationship, it’s either the two are always around each other or they are spending serious money on each other. Must be nice, having rich friends. A few years back, it was alleged that Vusi Nova got Somizi a pair of expensive Gucci leather low-top platform sneakers that are said to be worth $950 which is R12, 264. Learn more
Source: eNCA
