International ratings agency Fitch’s downgrading of state-owned arms manufacturer Denel due to the absence of reliable government support is disappointing but did not come as a surprise.
UASA regrets that the situation at Denel has reached this point after we took the company to court in a bid to get the SOE to pay its employees’ salaries. Their failure to do so in spite of a court order made clear how much the company has deteriorated.
The sad part is that it’s been allowed to get to this point.
Fitch stated as a reason that management volatility may impact the group’s ability to implement its turnaround strategy. With a CEO coming on board and resigning before any rescue plan could yield results, Denel is now looking to a new CEO who is expected to save this already sinking ship.
Sadly, South Africans cannot afford any more bailouts. The country is at a low point after the devastation of the Covid-19 global pandemic and years of corruption.
For further enquiries or to set up a personal interview, contact Stanford Mazhindu at 074 978 3415.