Is Denel at risk of reckless trading?
10 March 2021
The new Chairperson of the Board of Denel, Ms Gloria Serobe, today emphatically denied that Denel was trading recklessly as put to her in questions by members of SCOPA. She also responded that questions like that should not be asked as it could panic the public.
This is despite the losses of R4.4 billion accrued by Denel in the last three years due to a decline in revenue, and three consecutive audit disclaimers.
The Democratic Alliance (DA) will submit parliamentary questions to the Minister of Public Enterprises, Pravin Gordhan, regarding concerns around reckless spending.
In a presentation to SCOPA, Denel admitted it was insolvent with an increased debt position of R3.2 billion and cash of only R635 million with R331 million ring-fenced and it admitted that it thus faces liquidity issues, resulting in late payments of its debts including salaries.