R700m buy could be behind Denel suspensions
Serious cash flow problems after the recent acquisition of the local vehicle manufacturing component of BAE Systems Land Systems for more than R700-million are rumoured to be a possible reason for the suspension of three top managers at SA weapons manufacturer Denel, Netwerk24 reported on Monday.
There were even claims that suppliers do not want to supply parts to Denel any more until the company pays them.
Although Denel spokesperson Vuyelwa Qinga denied the validity of these rumours, she admitted that any company has "challenges" from time to time. She pointed out that Denel has made a profit the past four financial years.
Netwerk24 reported it is well known that BAE Systems was keen to get rid of its SA subsidiary, since the global market for military vehicles has shrunk considerably after Nato intervened in Iraq and Afghanistan.
Fin24 reported last week that the Denel board placed CEO Riaz Saloojee, CFO Fikile Mhlontlo and company secretary Elizabeth Africa on compulsory leave pending the outcome of an investigation.
Public enterprises spokesperson Colin Cruywagen told Fin24 on Friday that “the board of Denel is dealing with the matter and Minister Lynne Brown is kept abreast of it”.
The current board has only been serving for the past six weeks and according to Netwerk24 those in the know claim it is almost unthinkable that it could have identified issues with such far-reaching potential implications in such a short time.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation