Denel Chief Executive Officer Danie du Toit has asked the government for a R2.8 billion cash injection to help it emerge from the financial crises and secure lucrative export deal.
Denel is one of several state owned enterprises whose finances were damaged by years of mismanagement during former President Jacob Zuma tenure.
Denel produces military equipment from ammunition to missiles and attack helicopters for the South African’s armed forces and for export.
du Toit was appointed late last year to oversee the turnaround plan, said recovery plans were progressing well and Denel could secure deals worth 30 billion in the next two years if it received help to overcome acute liquidation constraints.
The CEO said, “We have an excellent return of investments potential on recapitalisation.”
Du Toit hopes the cash injection could be announced this month so that the funds would arrive in September or October.
