Board takes bold steps to clean up Denel as company posts negative financial results[Johannesburg, 2 November 2018] -
The significant losses in Denel's 2017/18 results show a business that has had a difficult year.
While Denel has posted modest profits for the past seven years, the significant losses in the company's 2017/18 results clearly show a business that has had a difficult year, marked by lapses in governance, mismanagement and poor contract execution that resulted in severe liquidity challenges.
This has been further compounded by R500 million in irregular expenditure and a disclaimer audit opinion by the Auditor-General, which is of grave concern to the company.
A new board was appointed on 7 April 2018 with a clear mandate from the shareholder, which included:
* Rebuilding and strengthening governance;
* Rooting out corruption;
* Restoring the financial standing; and
* Ensuring that SOCs fulfil their economic and developmental mandates...