The news comes hot on the heels of Denel CEO Danie du Toit's resignation.
Denel is being taken to court by trade union Solidarity over the state-owned arms manufacturer’s inability to pay salaries. The trade union announced this week that it would resume the legal action it had previously instituted against Denel in June but removed from the urgent court roll after Denel’s legal team committed itself to a facilitation process.
“There seems to be a total lack of commitment from the board of directors, the Department of Public Enterprises and the Treasury as far as the successful turnaround of Denel is concerned,” said Helgard Cronjé, sector coordinator for defence and aviation, in a statement.
“Many turnaround plans have already been submitted by the management, but the board and the minister are not prepared to accept responsibility and provide the financial assistance that is required. Solidarity, therefore, has no choice but to continue with urgent legal action.”
News of the trade union’s decision to resume legal proceedings comes hot on the heels of Denel CEO Danie du Toit’s resignation which, Helgard said would have further negative consequences for the group.
“Our first and foremost priority is to protect the interests of our members at Denel. They are loyal employees and we cannot allow that they have to sacrifice their salaries to pay for the corruption and mismanagement of the previous management.”
