The Democratic Alliance (DA) notes that Government has extended a R1.8 billion bailout to the money pit that is Denel. We are of the view that this billion Rand bailout for a defunct state-owned entity is not sustainable.

1. ThrowingbillionsatDenel won’tfix it
IssuedbyNatashaMazzone MP – DA Shadow Ministerof PublicEnterprises
31 Aug 2019 inNews
The DemocraticAlliance (DA) notesthatGovernmenthasextendedaR1.8 billionbailouttothe
moneypitthat isDenel.We are of the view thatthisbillionRandbailoutforadefunctstate-owned
entityisnotsustainable.
SimplythrowingmoneyatDenel won’tfix it.The armsmanufacturerneedsanoverhaul.
An incredulousamountof the people’smoneyhave beenspentonSOEsand yetthe publicisgetting
verylittle inreturn.
It isno longerrational orfeasible forGovernmenttohave full ownershipof Denelanditshouldbe
partiallyprivatised.There are manydefense companiesinthe worldthatwouldbe interestedin
buyingoff sharesandGovernmentshouldexplorethese possibilities.
Bailoutsprovide temporaryrelief tothe state-ownedentityinquestion,butcause permanent
damage to the national fiscus.Byprivatisingthisentity,we will reducethe impactof government
guaranteesonthe fiscus,promote competitiveness,improveefficiencyandstimulate jobcreation.