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Trade union Solidarity today welcomed the long-awaited action taken against the remaining members of the Denel top four. This comes after allegations of gross financial mismanagement recently became public.

According to Solidarity Deputy General Secretary Deon Reyneke, Solidarity and its members still had the expectation following the resignation of the Denel Group’s former CEO, Zwelakhe Nthsepe, in May 2018 that further investigations and steps would be instituted in the wake of Solidarity’s Denel Dossier it had submitted to the Minister of Public Works and the chair of the Denel Board in April this year. “The dossier contains allegations linking every member of Denel’s top four to mismanagement, and this amidst the Denel Group’s extremely poor financial performance,” Reyneke said.

Reyneke also said that the suspension of Odwa Mhlwana is another step in the direction of restoring Solidarity members’ confidence in the Denel Board and its executive management.

Solidarity members are all but happy with Denel’s offer of a 4% salary increase for 2018, while Denel’s executive management received salary adjustments of 47% and more during 2017.  “The latest developments will make a significant difference in our members’ focus to support the Denel Group and its Board in the process towards financial recovery,” Reyneke added.

Reyneke pointed out that Solidarity members believe offenders at top management level should be held accountable before employees have to carry the can for the financial conundrum the group finds itself in. “We are also calling for further investigations and deliberate action, when justified, to deal with the remaining two of the top four executives. There is an expectation among employees that firm action will be taken against executives who violate rules in the same way as employees who fail to perform their duties are dealt with,” Reyneke said.
 
“Solidarity commends the resolute action taken by the Minister of Public Works and the Denel Board to hold Denel’s top executive accountable and to restore employees’ faith in the survival of this state enterprise,” Reyneke concluded.

Issued by Solidarity