Denel liquidity crisis plunges employees into new financial crisis
11 July 2019
Solidarity today expressed its concern about the non-payment scandal currently plunging Denel employees further into a financial crisis.
According to a letter to employees, pension fund contributions for the month of June were deducted from their salaries, but the contributions were not paid over to the pension fund.
“There is still some uncertainty about exactly what has been paid and what not. According to feedback we received yesterday, medical aid contributions were paid, but not PAYE tax, UIF contributions or pension fund contributions for June,” said Helgard Cronjé, Solidarity’s Sector Coordinator for Defence and Aerospace.
The historic financial mismanagement and consequential liquidity challenges pushing the arms manufacturer further into the abyss every day, once again confirm that the ANC government is unnecessarily dragging its heels because it does not realise the gravity of the crisis.