The Democratic Alliance criticizes the government's recent R1.8 billion bailout of Denel, arguing that merely providing financial assistance is not a sustainable solution. They advocate for a complete overhaul of the arms manufacturer and suggest partial privatization to attract investment and improve efficiency. The party believes this approach will reduce the burden on national finances while promoting competitiveness and job creation.

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.