Question NW3413 to the Minister of Public Enterprises

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31 October 2022 - NW3413

Profile picture: Maotwe, Ms OMC

Maotwe, Ms OMC to ask the Minister of Public Enterprises

Following reports that Denel is going to need R3 billion to cover its funding gap over the next 12 to 18 months, what (a) factors were taken into account to make the determination and (b) plans has his department made to ensure that Denel gets the funding it needs in order to stay afloat?

Reply:

a) The total funding requirement is R5.2billion, Denel will be raising R1.8billion from disposal of non-core assets with over R900million already received in August 2022. Below is a breakdown of items the funds will be used for: 

  1. Funding to stabilise business (R977million)
  2. Funding for Growth and Sustainability (R900million)
  3. Current and Legacy obligations (R3326million)

b) The Department has applied and supported Denel’s funding request through the 2022 MTBPS and 2023 MTEF process. With regards to proceeds from non-core disposals, the Department is in constant communication with Denel on the progress made in order to fast-track the necessary PFMA approvals by the Minister.

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