Gordhan introduces new Denel board

Public Enterprises Minister Pravin Gordhan introduced the new members of cash-strapped state-owned arms manufacturer Denel.

The new board began work on April 1. Gordhan said the new chairperson of the board is Monhla Hlala, who is the former CEO Acsa, with other board members being Mzoli Kunene, UJ vice-chancellor Professor Tshilidzi Marwala, SANDF ombud General TT Mathanzima, Gloria Serobe, Talib Sadiq, Sue Rabkin, Dr Sibusiso Sibisi, Cheryl Carolus, Nonzukiso Siyotula, Thami Magazi and Martin Mnisi

Gordhan described the board as an illustrious ensemble with diverse skills sets, with varying experience and a wealth of knowledge that would be crucial for restoring the arms manufacturer to a financially sustainable company.

Hlala said she was honoured to be part of the team tasked with turning around the company.

Gordhan dismissed rumours of staff cuts, but said sustaining staffing would require finding financial solutions.

He said his department’s lawyers would be looking at how state capture accused individuals who brought the company to its current situation, but have since left the arms manufacturer, could be dealt with legally.

The introduction of the new board members comes after a meeting Gordhan had with them today.

It is reported that the financial situation at the company has been so severe at some point staff were not paid their salaries.

The state issued Denel with a R580-million loan guarantee to pay its suppliers and employees.

Gordhan’s department, the National Treasury and Denel, have been working on a plan to address the issues the company is facing.

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