Denel
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Denel SOC Ltd is a South African
History
Denel was established as a state-owned industrial company under the Department of Public Enterprises in April 1992. It inherited most of Armscor's production and research facilities, and over 15,000 employees. At the time of its formation, Denel restructured and reorganised the former Armscor subsidiaries into a number of divisions and subsidiaries within five industrial groups: systems, manufacturing, aerospace, informatics, and properties and engineering services.[5]
Denel has developed a number of notable products, such as:
- The Rooivalkattack helicopter.
- The Atlas Oryx utility helicopter.
- The Umkhontovertical launched air defence missile.
- Mokopa tandem warhead anti-tank guided missile, with a range of 10 km.
- Together with Gerald Bull, the G6 self-propelled howitzer and G5 towed howitzer, the longest ranged guns in their class worldwide, supported with base bleed, VLAP and the advanced fuzing technology.
- The 5th generation A-Darter air-to-air missile, currently in the final phases of development.
The
Though Denel's
Although Denel has comparable quality products, at lower prices, it has struggled to attract buyers, with the
In 2009 and 2010 RheinMetall Denel, a Denel subsidiary, advertised artisan training programmes and study bursaries which excluded white applicants, but relented after a meeting with trade union Solidarity.[7]
Divisions
The following divisions form part of Denel
- Denel Aeronautics incorporating Denel Technical Academy.
- Denel Dynamics
- Denel Industrial Properties
- Denel Integrated Systems and Maritime
- Denel Land Systems
- Denel Mechem
- Denel Overberg Test Range
- Denel PMP
- Denel Vehicle Systems
Associated companies
Companies part-owned by Denel.[8]
- Hensoldt (PTY) Ltd owns 70% and Denel holds 30% of the shares
- Rheinmetall Denel Munition owns 51% and Denel holds 49% of the shares
- Barij Dynamics (Barij) owns 51% and Denel holds 49% of the shares[9]
Financial difficulties
In 2004, Denel CEO Victor Moche informed parliament that the company was near bankruptcy after suffering a loss in the financial year 2003/4 of R358 million contributing to a mounting company debt of R1 billion. This was blamed on a lack of access to foreign markets and not being able to secure domestic arms procurement contracts.
In 2016, it was revealed that Denel had entered into a controversial single source supplier deal for ten years with VR Laser.
From May 2020 through to January 2022 some of their employees were not paid, or were only paid a part of their salary, despite being expected to report for duty every day.[22] The state owned company's financial troubles continued into 2021, when in April Denel Land Systems stopped paying its employees their salaries.[23] Union UASA started legal proceedings in 2020 to recoup its members' salaries, while Solidarity achieved a victory in the Johannesburg Labour Court in February 2022, when Denel was ordered to pay out R90 million by March 8. Denel did not comply however, prompting Solidarity to seize its bank accounts, which facilitated the full payout by July.[24] Solidarity also vowed to bring to book those responsible for the supposed "fund mismanagement and looting".[22] Finance Minister Enoch Godongwana announced in his 2022 budget address that the National Treasury had assigned Denel R3 billion in bailouts for the 2021/22 financial year.[22] Despite bank guarantees by government, Denel lost out on a R6 billion missiles deal (2022-2024) with Egypt, when South African banks cited ethical concerns and refused to extend a loan.[25]
References
- ^ "New CEO, CFO for Denel". News24. 1 September 2022.
- ^ a b c d e "Denel 2020 Annual Report" (PDF).
- ^ "History". ArmsCor. Retrieved 23 July 2018.
- ^ "Denel at risk of collapse as money runs out". 17 February 2021.
- ^ "Conversion: The Case of Denel". Peter Batchelor (International Development Research Centre). 26 November 2006. Archived from the original on 24 November 2006.
- ^ a b "What went wrong with Rooivalk?". Archived from the original on 17 July 2007.
- ^ "Whites to qualify for Denel bursaries". news24.com. News24. 4 May 2010. Retrieved 2 March 2022.
- ^ "Associated Companies | Denel SOC Ltd". Denel.co.za. 1 September 2008. Retrieved 29 September 2015.
- ^ "Company Profile". LMT. Archived from the original on 21 July 2015. Retrieved 29 September 2015.
- ^ Pressly, Donwald (8 September 2004). "Denel 'at doorstep of bankruptcy'". The M&G Online. Retrieved 3 August 2019.
- ^ Cornelissen, Christel (18 February 2022). "Net een uit vier lugmagvliegtuie 'diensbaar'". maroela.co.za. Maroela Media. Retrieved 18 February 2022.
- ^ Staff Writer (17 February 2022). "Only a fraction of South Africa's airforce is operational right now". businesstech.co.za. BusinessTech. Retrieved 20 February 2022.
- ^ Gibson, Erika (6 February 2022). "The defence force is seriously wounded, and state capture of Denel played a big role". timeslive.co.za. TimesLive. Retrieved 2 March 2022.
- ^ AmaShabalala, Mawande (2 February 2022). "Khumbudzo Ntshavheni in Zondo's firing line over Denel dismissals". Politics. timeslive.co.za. TimesLive. Retrieved 4 March 2022.
- ^ Paton, Carol (16 February 2016). "BusinessLIVE". BusinessLIVE. Retrieved 3 August 2019.
- ^ a b "Denel Asia could be unlawful". defenceWeb. 17 February 2016. Retrieved 3 August 2019.
- ^ Bavier, Joe; Alex; Winning, er; Reuters (30 November 2018). "'Severe crisis': Denel urgently needs partnership to survive". CityPress. Retrieved 3 August 2019.
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has generic name (help) - ^ Liedtke, Simone (12 July 2019). "Denel's liquidity crisis plunges employees into new financial crisis". Engineering News. Retrieved 3 August 2019.
- ^ "OUTA charges Denel board chairman with corruption". defenceWeb. 4 September 2017. Retrieved 3 August 2019.
- ^ a b "Denel at the Zondo Commission". defenceWeb. 18 March 2019. Retrieved 3 August 2019.
- ^ "Denel is going after bosses to get back 'misspent' money". TimesLIVE. 31 July 2019.
- ^ a b c Larkin, Philippa (25 February 2022). "Denel ordered to pay R90m to Solidarity members or face asset seizure". iol.co.za. IOL. Retrieved 2 March 2022.
- ^ Martin, Guy (19 April 2021). "Denel Land Systems unable to pay April salaries". defenceWeb. Retrieved 20 April 2021.
- ^ Solidariteit Nuuskantoor (31 July 2022). "Oorwinning – Solidariteit wen armdruk teen staatsinstelling Denel". Solidariteit. solidariteit.co.za. Retrieved 7 August 2022.
- ^ Ginindza, Banele (2 March 2022). "Denel loses missiles deal after banks turn a deaf ear". iol.co.za. IOL. Retrieved 20 March 2022.