Free Trial

Denel Unable to Afford Severance packages, Salaries Amid Funding Squeeze

SOUTH AFRICA
  • State arms manufacturer Denel says it is unable to afford severance packages and salaries amid its restructuring process
  • Notes a drastic reduction in revenues over the last three years & R4.4bn losses due to Covid-19
  • Denel was snubbed in the recent budget in its request for further funding to remain afloat, and has said it risks completely running out of funds by end-March
  • This adds to issues across the board at ailing SOEs such as Eskom, Transnet and SAA struggling to implement restructuring packages to adhere to Govt's fiscal consolidation goals
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.