Question NW769 to the Minister of Public Enterprises
10 April 2024 - NW769
Gondwe, Dr M to ask the Minister of Public Enterprises
(1) (a) What is the latest update on the restructuring and repositioning of Denel and (b) on what date is the restructuring and repositioning of Denel likely to be finalised; (2) (a) which aspects of Denel’s turnaround plan have been implemented to date and (b) what total amount of money is required by Denel to completely implement its turnaround plan; (3) whether Denel has been able to source and secure funding for the implementation of its turnaround plan; if not, what is the position in this regard; if so, what are the relevant details; The funding for the growth phase was included in the recapitalisation allocated to Denel in 2023 (4) what (a) is the current value of Denel’s order book and (b) was the value of this order book in each year in the last five financial years to date? NW947E
Reply:
According to the information received from DENEL
1. (a) Denel has materially implemented the first two phases of the turnaround which is the stabilise and sustain phases, starting with the growth phase.
(b) The turnaround plan will be implemented over a three- year period: 2022/23 financial year to 2024/25 Financial year.
2. (a) Denel has implemented the stabilise and sustain phase.
(b) The total amount for the completion of the implementation of the turnaround plans forms part of the recapitalisation allocated to Denel SOC Ltd.
3. The funding for the growth phase was included in the recapitalisation allocated to Denel SOC Ltd in 2023.
4. (a) R4 406m (Secured Order Book) and R16 580m (Order Pipeline/Winnable Projects) at the end of Dec 2023.
(b)
|
YEAR |
Order Book/Backlog (Rm) |
Order Pipeline/ Intake Rm |
|
Dec 2019 |
17 487 |
8 290 |
|
Dec 2020 |
13 240 |
11 650 |
|
Dec 2021 |
11 977 |
8 316 |
|
Dec 2022 |
8 862 |
9 414 |
|
Dec 2023 |
4 406 |
16 580 |
Remarks: Reply: Approved / Not Approved/ Comments
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister of Public Enterprises
Date: Date