Denel to forfeit assets worth millions

2223

Embattled State-owned Denel will forfeit assets worth over R12 million in terms of a warrant of execution issued in favour of trade union Solidarity.

The Centurion headquartered labour organisation took the defence and security conglomerate to the Labour Court last year after attempts to have outstanding salaries and company contributions for, among others, medical aid and pension funds, paid came to naught.

The court in its first sitting on the case, gave Denel the opportunity to submit affidavits and other supporting information ahead of a second appearance when judgement was reserved.

In a statement today (Thursday, 4 March) Solidarity said it obtained a warrant of execution to seize assets to the value of R12,7 million from Denel.

“This is a victory for our members at Denel who endured unprecedented uncertainty and tension. At least it gives them a breather and relief in the knowledge overdue salaries will be partially covered,” Helgard Cronjé, Solidarity deputy general secretary for the public sector, said.

He pointed out it is only offers temporary employees at South Africa’s arms manufacturing giant and the battle to make Denel sustainable and viable continues.

“Employees bear the consequences of mismanagement at top management and board level far too often.

“This court order conveys a message that public sector employees are tired of constantly bearing the brunt of corruption and ignorance at their places of work. It’s time for the state to realise if it cannot make a positive contribution to State-owned enterprises (SOEs)  then it must at least stop being a major burden, prejudicing their proper management and operation.



“We are delighted with the victory, but have to keep fighting to ultimately turn Denel around and to create a work environment offering security and excellence to our members,” Cronjé said.