Denel CEO says that company was harmed by state capture under Zuma

Denel CEO says that company was harmed by state capture under Zuma

- Denel's CEO says that the company was harmed by state capture

- He said this took place during the Zuma presidency

- Pravin Gordhan, however, has announced plans to turn around the struggling SOE

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Denel CEO Daniel du Toit says that much of the company's financial problems are a result of state capture.

He says that the company's coffers were looted during the Zuma presidency.

This comes after Denel had said it would only be paying its employees 85% of their salaries due to cash flow problems.

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Since that announcement, Public Enterprises Minister Pravin Gordhan assured the employees that would be receiving their salaries in full.

He says that a lender has signed on to assist the cash-strapped company. Gordhan has also said that there will be significant reforms at Denel aimed at cutting costs. This includes renegotiating contracts, improving efficiency and reviewing supply chain processes, according to Eyewitness News.

Gordhan also said that Denel expected almost R30 billion in incoming contracts, which he says will go a long way to helping its financial issues. He made the comments in Parliament as MPs debated Cyril Ramaphosa's State of the Nation Address.

READ ALSO: Ramaphosa's campaign probe labelled 'bizarre', DA distances itself

Additionally, like Du Toit, Gordhan said that corruption and state capture had significantly harmed Denel's finances, Briefly.co.za has gathered.

Denel is a state-owned arms manufacturer. Gordhan described it as "a crucial and strategic state entity".

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Source: Briefly.co.za

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