Solidarity has submitted a memorandum with containing possible solutions it believes will help defence group Denel overcome the challenges it faces.
The memorandum was addressed to Denel CE Dr Danie du Toit and was compiled after Solidarity conducted a survey among its members at Denel group regarding the challenges it faces, which include corruption, financial mismanagement and cash flow constraints.
Based on the survey, the Solidarity Research Institute identified five broad concerns pertinent to the group’s current challenges.
According to Solidarity deputy general secretary Johan Botha, the biggest concern revolves around the appointment, management and structuring of the organisation’s human resources.
Botha said the concern ranked second-highest in the survey related to suppliers and procurement.
“Members feel that the procurement process is driven by politics rather than by the quality of the products or services being obtained. Many of the products could have been sourced in-house or otherwise through private companies.”
Another area of concern is around the maintenance and use of technology, equipment and facilities.
“There is a clear concern among our members that certain assets are being retained at major cost to the group while those assets do not contribute to the group’s turnover,” Botha said.
Members also highlighted the level of red tape involved in processes currently in use in the organisation as a concern.
“Members feel that red tape stands in the way of managers being able to implement strategies that could be of financial benefit to the group. They also feel that red tape does not allow their voices to be heard,” Botha indicated.
According to Botha, members also identified a need to work more closely with the private sector in all forms of business.
“Solidarity firmly believes it has a role to play to achieve a turnaround at Denel and, ultimately, its growth,” Botha posited.