Committee on Public Enterprises commits to monitor Denel
7 November 2019
The Portfolio Committee on Public Enterprises has committed itself to monitoring developments at Denel and assist in addressing challenges facing the state arms company to ensure that the company is turned around to improve its revenue.
Denel appeared before the committee at Parliament yesterday to brief it on the annual report and financial statements for the 2018/19 financial year.
The committee welcomed Denel’s presentation and the work that has been done by the new Board to turn the company around. Members of the committee told Denel about the importance of always being driven by the common mandate of all the state companies of contributing to the economy of the country.
For the financial year under review, Denel achieved seven of the 23 key performance indicators in the shareholder compact which is 30.4% of the targets, and sixteen or 69.6% of the targets were not achieved. The targets are related to: Research and Development, Programme Delivery, Broad Based Black Economic Empowerment, preferential procurement and enterprise development, corporate social investment, sustainable development indicators, and financial sustainability. The failure to meet these targets was attributed to the entity’s liquidity constraints.