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Denel to pay December salaries, 13th cheque amid cash flow problems

'Eyewitness News' reported earlier this week that the state-owned company’s cash flow problems threatened the payment of Christmas paycheques.

Picture: Supplied.

PRETORIA - Denel has confirmed its employees will receive their December salaries as well as their outstanding 13th-cheque.

Eyewitness News reported earlier this week that the state-owned company’s cash flow problems threatened the payment of Christmas paycheques.

Denel says the salaries and outstanding 13th cheques will be paid into staff accounts next Friday.

Management says they have been in talks with the Public Enterprises' Department and Treasury to address severe liquidity challenges.

Chief financial officer Odwa Mhlwana says they will now also be in a position to pay their suppliers.

Mhlwana adds the cashflow problems started when it expanded its operations to cater for clients other than the National Defence Force.

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