Denel has paid its employees retirement contributions for June 2019, according to the Denel Retirement Fund.
In a letter sent by the company today, Jacques van der Merwe, Principal Officer: Denret, said that Denel wishes to confirm that it “has paid its members’ required membership contributions for June 2019, which was received by Denret on 17 July 2019.”
Trade union Solidarity earlier said Denret had not yet received pension fund contributions from the State-owned defence conglomerate for June and threatened legal action to get Denel to pay the outstanding contributioins.
Denel earlier this month acknowledged the group was “working tirelessly” to pay the pension fund contributions. According to a statement Denel was also “engaging banks to secure bridging finance until recapitalisation is received”.
The pension issue is part of overall current liquidity challenges at Denel, the previous manifestation being short payment of salaries at the end of June. After indicating it would only be able to meet 85% of June salaries Public Enterprises Minister Pravin Gordhan announced an eleventh hour reprieve in the form of a local commercial bank had made funds available enabling Denel to fully meet its June salary commitments.
This, Solidarity noted, did not include other employee benefits such as pension fund contributions, UIF deductions, Skills Levy deductions or tax deductions.