Posts tagged with 'state-owned entity'

 

SAA’s wings cut – bankrupt SOE can only pay salaries in January

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The bankrupt, state-owned SAA airline company will manage to pay its staff salaries for January, but that’s where it all ends.

With a bankrupt government failing to fulfill its pledge to pump another R2bn into the soe, it looks as if SAL will not remain standing.

The airfreight company faces three serious problems, and the solutions to this are vague and unclear, as different measures could not create a better situation.

The SAA needs at least R2bn to get its planes up, but with the many cancellations it has had to announce, its passengers are becoming less and less and profitability is becoming almost impossible.

The government’s inability to borrow R2 billion from any banker in the country has failed, which is now seen as a vote of no confidence in the financial approaches the regime is following.

It can inflict a final blow.

The large number of workers who should never have been hired is another reason why the
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Denel’s huge contract worth billions of Rand halted after dispute over inspection arises – How long will the cash-strapped SEO remain standing?

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South Africa has blocked Denel’s huge contract worth billions of Rand. The contracts, the largest of which are for weapons in the two countries, Saudi Arabia, and the other in the United Arab Emirates, have been blocked and could eventually be canceled by the buyers.

South African manufacturer Denel, which, like many other state entities, is currently struggling to keep its head above water, can hardly afford to lose the giant orders because a dispute over inspection has arisen.

Informed sources point out that this could also mean that thousands of jobs could be jeopardized by the struggling armaments manufacturer.

The inspection dispute apparently revolves around a clause in the export documents that requires foreign customers not to transfer weapons to third-party institutions or countries.

The provision further states that South Africa is allowed to inspect the facilities, and the provisions could lead to cancellation of orders a
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State-owned Denel has cash flow problems and can only pay workers a portion of their salaries

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Denel said that they could only pay employees 85% of their salaries for the work done in the month of June.

Group Chief Executive Officer, Danie du Toit said in a statement, “The management of Denel is working tirelessly to ensure that delayed portions of salaries will be reimbursed to employees as soon as possible.”

Du Toit says the management of Denel acknowledges the inconvenience caused by the decision, in particular the late communication. However, at the time the decision was made, the company had no alternative but to go this route.

Those staff members who bank with First National Bank will receive 85% of their salaries on Tuesday (June 25) and other employees on Wednesday (June 26).

“Due to ongoing liquidity challenges we are now faced with the unfortunate reality that the company is not in a position to fulfil the 100% salary obligation for June 2019,” Du Toit said.

The statement went on to say that the sh
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These are apparently some of the perks of holding an executive position at Transnet – The high life of a Herbert Msagala includes 6 cars, 4 properties and a very posh home even though this state owned entity is bankrupt?

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Forensic report found exec bought six cars – including a Maserati – four properties and a posh home in Steyn City.

He bought a top-of-the-range Maserati Coupé, four properties for cash in just seven months and received a fat deposit for his posh house paid for by a service provider.

The details of how Herbert Msagala, the group executive for Transnet Capital Projects, amassed at least R17 million in a year are contained in a forensic report.

The report, dated October 2017 and compiled by forensic investigations company Nexus, found that he:

• Bought six cars – including a Maserati GranTurismo GT Coupé, a Ford Ranger and a Hyundai H1 – all for cash;
• Acquired four properties within seven months – none of which is bonded – for a total of R15.2 million; and
• Paid the full purchase price of R7 million for a his property in the exclusive northern Johannesburg enclave of Steyn City in just nine instalments.

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