Denel 'not planning' on more government bailouts

File: Denel’s executive has told Parliament it wants more than R680-million from the Defence Department to meet its sovereign and strategic responsibilities. Reuters/Siphiwe Sibeko

JOHANNESBURG - Struggling arms manufacturer Denel said it's not planning to get new government cash injections despite its liquidity crisis which has been worsening with time.

Denel, which makes military equipment for the armed forces and other international clients, is one of several troubled entities that have been kept afloat by government bailouts in recent years.

READ: Denel to produce ventilators in coronavirus fight

It's struggled to pay salaries amid export restrictions and lower revenue.

Last week, the government said Denel had made a R1,7-billion loss during the 2019-2020 financial year.

READ: Denel posts major loss

The company received R1,8-billion from the government in 2019.

The company was promised another R576-million, in this year’s budget, which it is receiving in instalments.

Denel said it's in talks with the defence ministry about a retainer to help maintain some of its operations.

Source
eNCA