- Denel may again fail to pay workers despite billions in bailouts since 2019.
- The DA demands full disclosure on where the money went and who failed.
- A company that cannot pay staff cannot credibly support the SANDF.
The reports that divisions of Denel may be unable to pay salaries this month are deeply alarming, but sadly not surprising. This is the predictable outcome of years of failed governance, collapsed accountability, and the unresolved legacy of state capture.
Denel was hollowed out during the state capture years: leadership was compromised, finances were abused, skills were lost, and credibility with clients collapsed. That damage was severe.
But what is now happening goes beyond history. Years later, and after repeated bailout packages and turnaround promises, Denel still cannot meet its most basic obligation to its workers.
Since 2019, Denel has received billions of rand in direct bailouts and guarantees. Much of this funding was meant to stabilise operations and enable recovery.
Yet employees are again being told salaries may not be paid, raising serious questions about where the money went, whether turnaround plans were ever properly implemented, and who is being held accountable for failure.
The recent shift of Denel to the Department of Defence does not change this reality. Denel has not been “incorporated into the SANDF”. Moving shareholder oversight does not magically fix weak financial controls, poor execution, or the absence of consequence management.
A company that cannot reliably pay staff cannot credibly support the South African National Defence Force, nor can it claim to safeguard strategic defence capabilities.
The situation at divisions such as Pretoria Metal Pressings and Denel Dynamics is particularly concerning. Approved recovery plans and so-called ring-fenced interventions mean nothing if workers are still left in limbo.
Either those plans were not implemented, or the funding was diverted elsewhere. Both possibilities are unacceptable.
Denel’s slow collapse is how strategic capability is lost, not with a bang, but through repeated crises, unpaid salaries, and the steady loss of skilled people.
The DA will demand full transparency on the use of bailout funds, clear evidence of implementation, and accountability for those responsible. We will insist on full disclosure of where the money went, who failed to implement approved recovery plans, and why workers are again paying the price for executive and political failure.