Denel Land Systems once again unable to pay salaries defenceweb.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from defenceweb.co.za Daily Mail and Mail on Sunday newspapers.
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Written by Guy Martin -
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Denel Land Systems’ continued financial and liquidity pressures mean it will again be unable to pay salaries, and the division has told employees it will not be able to honour May 2021 salary payments by the 25th due to a lack of cash.
In a notice to Denel Land Systems staff dated 14 May, CEO Mxolisi Makhatini stated, “We will communicate the salary sliding scale and date of payment for the month of May 2021 payroll as soon as our cash position has improved.”
All the statutory benefits such as medical aid, Denret pension contributions, SARS, garnishees, home loans, dispute levies and union subscriptions are at risk of not being paid, the company warned. “These payments are highly dependent on forecasted cash receipts expected towards the latter part of the month. We will attempt to prioritise the payment of medical aid contributions and the pension risk benefit.”