Another Denel salaries court case

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A group of current and former Denel employees plan to attach over R4 million apparently residing in a Denel company account as response to the troubled State-owned enterprise (SOE) not complying with a court order.

The group of 14, not named but in all probability members of the so-called Denel Employees Association (DEA), went to the North Gauteng High Court in Pretoria in search of salary settlements dating back to May 2020, according to Fin24.

A report in the Johannesburg-based digital daily has it the court ruled in their favour in January to meet the salary obligations. “Denel did not oppose the application and was ordered to pay within 10 days by 3 February. According to their lawyer, payment has not yet materialised,” Fin24 reported.

“The order was served on Denel to be aware of immediately it was granted. We have not heard from Denel yet. When we served them with the order, we attached a letter to say what the consequences would be if they do not comply, namely that we will attach assets by any legal means to try to satisfy the order,” the digital publication reports the group’s lawyer as saying.

“Consequently, the group decided to attach Denel assets and opted for a corporate bank account at RMB (Rand Merchant Bank). A warrant of execution to attach the money stipulated in the court order and pay it to the claimants was served on RMB on 25 February, after Denel was informed on 24 February this step would be taken.

“At this stage we have not received any word from Denel, but are engaging with the bank. We can confirm the bank has been served and we are trying to communicate with its legal team to find out how much money is in the Denel account and if it will be enough to fulfil my clients’ court order,” the lawyer said.

“Denel told Fin24 it was not aware of a bank account being frozen or any attempt to do so.”

Reacting to a defenceWeb inquiry last September Denel said it was “not aware of an organisation called DEA”.

Last month the Johannesburg Labour Court ordered Denel pay R90 million to Solidarity members for outstanding salaries and employee benefits.

The court appearance, according to a Solidarity statement, follows “a previous success” which saw warrants issued to attach Denel property and assets valued at R12 million.

If Denel doesn’t comply with the latest court order, Solidarity will again instruct the sheriff to seize Denel assets.

At the end of December last year, Denel owed R789 million to employees and R900 million to suppliers