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Statement by Stanford Mazhindu, spokesperson of the trade union UASA:

After months of engaging with state-owned entity Denel and failing to find a solution to the issue of salary non-payment, UASA has no choice but to take the matter to court.

UASA will be in the Labour Court on the 4th of August 2020 to launch an urgent application for a compliance order to force Denel to honour its contractual obligations.

It became clear during our engagements that there are fundamental differences between the management of Denel and the chairperson of the board, Ms. Monhla Hlahla. During a meeting on the 9th of July 2020, Ms. Hlahla denied having any knowledge of the short payment of salaries and distanced herself from the proceedings.

She also indicated that the corporate plan presented to her by Denel management, which contained proposals for the survival of the SOE, was not presented to Public Enterprises Minister Pravin Ghordan, as she did not trust the proposal.

The non-payment of salaries by a state-owned entity has left UASA wondering why government has allowed this company, strategically important to the security of South Africa, to fall into such disarray.

UASA members, who were at all times loyal to Denel, now have to carry the burden of poor management decisions and find themselves in a desperate financial position as they are unable to meet their financial obligations towards their creditors and families.

Issued by UASA