Denel needs bailout to survive: Defence Minister

Denel is just one of many state owned entities that has been brought to its knees, thanks to years of mismanagement, corruption and a lack of accountability. It has now been left cash-less and is looking to government for a bailout. Courtesy #DStv403

JOHANNESBURG - 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.

READ: Denel 'not planning' on more government bailouts

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.

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Source
eNCA