Business

Cash-strapped Denel’s R1.5 million CEO ‘handshake’ irks workers

2019-07-02 02:00

Employees at state-owned enterprise Denel are unhappy with the R1.5 million “sign-on” bonus paid to CEO Danie du Toit.

The cash-strapped arms manufacturer paid the money to Du Toit as an incentive.

He joined Denel on January 14.

However, according to at least three employees, one of whom is an executive, the matter was raised by the majority union at the company, the Liberated Metalworkers’ Union of SA (Limusa), at a recent meeting about salary payment shortfalls.

Limusa general-secretary Mawonga Madolo also issued a statement about the R1.5 million, as well as a R600 000 relocation fee Du Toit was allegedly paid.

According to a document seen by City Press, dated February 25, Du Toit was paid a R1 523 978 “non-pensionable allowance”.

His annual package is R5 million.

Denel spokesperson Pam Malinda declined to confirm or deny the matter.

“Employment contractual details between an employer and employee are confidential,” she said.

Following the recent bailout by a commercial bank, the company issued a statement saying it welcomed the confidence shown by government.

Du Toit said the company was busy with a comprehensive programme to restore good corporate governance, reduce costs and find new opportunities for growth, especially in export markets.

“The support given to us by President Cyril Ramaphosa in Parliament will help us to position Denel as a reliable designer and manufacturer of world-class defence and technology systems,” said Du Toit.

“Our reputation took a severe battering with the revelations about state capture and widespread irregularities in the company, but we are taking determined steps to get it back on track,” he said.

FINANCIAL STATE OF OTHER STATE-OWNED ENTERPRISES

SA Post Office

The SA Post Office CEO, Mark Barnes, said the company did not need any external financial help yet.

“The SA Post Office is on a sound financial footing and does not have any external borrowing or outstanding government guarantees,” Barnes said.

SAA

South African Airways spokesperson Tlali Tlali said the turnaround plan previously announced had not changed, even after the departure of the former CEO Vuyani Jarana.

“As previously announced, the board and shareholders approved a long-term turnaround plan with a break even in financial year 2021.

“This plan was underpinned by a capital injection of R21.7 billion.

“To date, the company has received R5 billion.

“The company continues its funding arrangements with both the shareholders and lenders,” Tlali said.

“As would be appreciated, this is a sensitive matter and at a critical stage.”

SABC

The state broadcaster has a reported debt of R1.3 billion and has requested a R3.2 billion bank guarantee from government.

Vuyo Mthembu, the spokesperson for the national broadcaster, said: “The SABC reiterates that it has submitted all relevant documentation regarding its funding request to the shareholders.

“The SABC has been working closely with the department of communications and Treasury in this regard, and [is] not in a position to comment further,” Mthembu said.


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October 20 2019