Crisis deepens at South Africa's Denel as more board members resign

Its fortunes have worsened during the COVID-19 pandemic as some of its trade unions took it to court after it failed to pay full salaries during some months last year. Denel, which makes military equipment for South Africa's armed forces and for export, said in an announcement on the Johannesburg Stock Exchange that a recruitment process for a new board chair was under way. A company spokeswoman referred all questions to the Department of Public Enterprises, the main ministry responsible for Denel.

South African state-owned weapons manufacturer Denel said on Thursday that two board members, including chairwoman Monhla Hlahla, had resigned, days after it said several other board members had stepped down.

The company did not give a reason for the resignations, which deepen the crisis at Denel. The company depends on government bailouts and has faced liquidity problems. Its fortunes have worsened during the COVID-19 pandemic as some of its trade unions took it to court after it failed to pay full salaries during some months last year.

Denel, which makes military equipment for South Africa's armed forces and for export, said in an announcement on the Johannesburg Stock Exchange that a recruitment process for a new board chair was under way. A company spokeswoman referred all questions to the Department of Public Enterprises, the main ministry responsible for Denel. A spokesman there said the department would comment at an appropriate time.

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