Denel PMP able to pay half of January salaries


Denel Pretoria Metal Pressings (PMP) is able to pay half of outstanding salaries for January, and is hopeful of paying February wages.

PMP CEO Phaladi Petje in an infogram to staff dated 1 March, stated that, “it is extremely encouraging that some progress is being made to collect cash that is sufficient to pay 50% of the outstanding salaries for January 2022. The payment will be made today, effective midnight. This will exclude the ring-fenced payments made last Friday to Security, Lead Azide, Power Cartridges and related support services. We still have orders to deliver, but it’s critical that all required hands are on deck to execute.”

He added that there is much more work to be done in the execution of sales and if no orders are executed and delivered, no cash can be generated.

“Management remains committed to pay the outstanding payments for January, February salary and the balance of 25% of the 13th cheque as soon as sufficient cash are collected. All avenues are being pursued to generate cash.”

Last month PMP said it had managed to pay the outstanding 65% for December salaries, minus a once off payment of R2 750, and a quarter of 13th cheques.

Due to no or limited working activities taking place in December, both December and January salaries were in jeopardy.

At the end of December 2021, Denel owed R789 million to employees and R900 million to suppliers.