Gordhan appoints new board members to rescue cash-strapped Denel

Public Enterprises Minister Pravin Gordhan has announced a new Interim Board of Directors for the struggling state-owned entity, Denel.

This makes Denel the third State Owned Enterprise to receive a major board overhaul.

Read: Denel's interim board to give an update on liquidation in 7 days

Acting DG at Department of Public Enterprises, Makgola Makololo says Denel's been faced with a number of challenges.

They also have a huge market globally, but their ability to service those contracts to ensure that they can deliver on time has been a major challenge. That has been the serious driver of the liquidity issues that they are currently facing.

Makgola Makololo, Acting DG at Department of Public Enterprises

Makololo says Denel depends heavily on the Defence Force in terms of the marketing of their product, and claims it's failing to convert its order books into revenue.

But more than that, banks began losing confidence in the enterprise after the board made several bad business decisions.

The banks have taken a certain posture on Denel towards the end of last year. They felt they were seriously exposed to issues of corruption and particular individuals on the board and said they wouyld not be in position to continue lending to Denel until they are clear their money is being used for the right things.

Makgola Makololo, Acting DG at Department of Public Enterprises

Makololo says Denel is still facing serious financial difficulties with debts owning of R350-million.

Staff and suppliers haven't been paid for over 200 days.

Minister Gordhan announced the new Chairperson as Monhla Hlala. She is the former CEO of Acsa.

Other board members former chairman of Saab Grintex, Zoli Kunene, business woman Gloria Serobe, and struggle activist Cheryl Carolus.

The new board began work on April 1.

To hear the rest of the conversion with Makgola Makololo, listen below:


This article first appeared on CapeTalk : Gordhan appoints new board members to rescue cash-strapped Denel


Recommended

by NEWSROOM AI

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
#Denel: I am confident that we have a group of very capable people - Gordhan

#Denel: I am confident that we have a group of very capable people - Gordhan

Gordhan announced the appointment of a new board on Monday.

Former Acsa chief executive Monhla Hlahla to head new Denel board

Former Acsa chief executive Monhla Hlahla to head new Denel board

Public enterprises Minister Pravin Gorhan announced a new board for Denel on Monday.

[LISTEN] Former Denel chairman is trying to get away, says Outa

[LISTEN] Former Denel chairman is trying to get away, says Outa

Daniel Mantsha was accused, by civil action group Outa, of trying to give the Guptas access to the country's defence technologies.

I want to tell my side of the story - Lynne Brown

I want to tell my side of the story - Lynne Brown

Former public enterprises minister stepped down as an ANC MP on Thursday.

Doyenne of Parliament Dene Smuts dies

Doyenne of Parliament Dene Smuts dies

Dene Smuts passed away last night. She served in Parliament for 20 years and was known as a hardworking no nonsense MP.

Discord over SANDF Sudan troops, SA digi-migration fail, youth entrepreneurship

Discord over SANDF Sudan troops, SA digi-migration fail, youth entrepreneurship

The big issues out of 702's John Robbie Show and CapeTalk's Breakfast with Kieno Kammies.

Popular articles
Vigilante mob attacks alleged criminals in Daveyton

Vigilante mob attacks alleged criminals in Daveyton

Tensions are rife in the East Joburg township as the community attacked and killed criminals.

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Survivor winner Tom Swartz vows to buy his wife 'new boobies and a family house'

Swartz says he would have done anything to get the R1 million prize money.

[WATCH] Dad uses a drone to pull out son's tooth

[WATCH] Dad uses a drone to pull out son's tooth

Khabazela shares YouTube videos gone viral including a barmaid hitting a colleague who slapped her rear during a routine.

'There is no way Magnus Malan could've done the things he is accused of'

'There is no way Magnus Malan could've done the things he is accused of'

Former police minister Adriaan Vlok has rejected accusations that former minister Malan was at the centre of a paedophile ring.

4 tips for safely investing right now when everything is so hectic

4 tips for safely investing right now when everything is so hectic

Bruce Whitfield asks Personal Financial Advisor Warren Ingram for advice on how investors can safely navigate this hectic time.

[Listen] Lottery responds to Tshepo's fraud claims

[Listen] Lottery responds to Tshepo's fraud claims

Philemon Letwaba says Tshepo's case relates to some of the issues that they are dealing with on a daily basis.