State ‘not sell­ing part of stake’ in Denel

The New Age (Gauteng) - - BUSINESS - TNA REPORTER

STATE­OWNED arms man­u­fac­turer Denel has de­nied parts of the en­tity will be sold to ease its fi­nan­cial po­si­tion.

The state arms pro­ducer was hit hard af­ter weapons or­ders plum­meted and half of its board jumped ship.

De­fence and Mil­i­tary Veter­ans Min­is­ter No­siviwe Mapisa-Nqakula in­sisted yes­ter­day that no de­ci­sion was made by the gov­ern­ment to sell off part of its stake in Denel.

“In an event that such a de­ci­sion is made, the gov­ern­ment will have to care­fully de­ter­mine which parts of the com­pany should be sold,” Mapisa-Nqakula said.

She ex­pressed con­cern that me­dia en­quiries seemed to cre­ate the im­pres­sion that the gov­ern­ment was “lean­ing to­wards a spe­cific di­rec­tion with re­gard to the chal­lenges fac­ing Denel”.

“This may send a wrong mes­sage dur­ing sen­si­tive ne­go­ti­a­tions on Denel’s fi­nan­cial sit­u­a­tion. It is im­por­tant that we con­clude the dis­cus­sions and that any de­ci­sion made in this re­gard will be an out­come of this im­por­tant con­sul­ta­tion,” she said.” – 701316.

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