Denel has spent over R5 million in the past four years on its Board of Directors, the Department of Public Enterprises has revealed.
Replying to a written question by Christian Themba Msimang of the Inkatha Freedom Party, Public Enterprises Minister Pravin Gordhan revealed that since her appointment in April 2018, Denel board chair Gloria Serobe has received R2 287 491 in remuneration to date.
Since their appointments in April 2018, board members Mandla Mnisi has received remuneration of R1 033 034; Thami Magazi received R2 045 876; and Temba Matanzima received R774 606.
Since being appointed in June 2021, Interim Non-Executive Board Member and Interim Chair: Denel Audit Committee Tshidi Mokgabudi received R12 873 while Tryphosa Ramano, appointed in February 2022, has received R21 337.
Gordhan did not disclose the remuneration of Interim Group CEO William Hlakoane nor board member Hannelie Nel or Group Company Secretary N Manolo.
In January, in response to another parliamentary question, this time posed by the Democratic Alliance’s Michele Clarke, the Minister of Public Enterprises revealed that Denel board members had received directors’ fees for official meetings for three quarters of the 2020/21 financial year and the first two quarters of the 2021/22 financial year. As of January, board members’ fees for the third quarter of 2021/22 were outstanding and committee fees for quarters 1, 2 and 3 of 2021/22 were outstanding “due to Denel’s liquidity situation”.
Meanwhile, Denel’s five divisional Chief Executive Officers have been receiving partial salary payments since June 2020 while the Interim Group Chief Executive Officer is currently receiving a partial salary. They all have outstanding salary and other related payments due to them from Denel dating back to mid-2020.
Loss-making Denel is attempting to turn itself around but is struggling to overcome numerous issues, including paying suppliers and staff.
Another written response by Gordhan to a parliamentary question stated that, “the situation at Denel has necessitated the need to reset and re-purpose Denel’s value proposition and to support its balance sheet. The Minister of Finance has approved approximately R3 billion to settle Denel’s guaranteed debt. This will enable the SOC to significantly reduce its interest payment burden which was over R200 million per annum.
“The focus is on core business growth and partnerships, disposal of non-core businesses and assets. The cash raised from the disposals will be used to re-capitalize operations, settle outstanding salaries and other creditors. This will also enable Denel to restore its credibility with employees, suppliers, and clients (existing and potential).”
