Solidariteit lays criminal charges against Denel top brass

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A broken country.

Trade union Solidarity today laid charges on behalf of its members employed by state-owned entity Denel against both its Chief Executive Officer, Zwelakhe Ntsepe, and its Chief Financial Officer, Odwa Mhlwana. This follows after it has come to light that the company has squandered its employees’ money.

According to Solidarity’s Deputy General Secretary Deon Reyneke, the charge is filed in terms of section 332 of the Criminal Procedure Act. “Denel, knowingly and without the permission of the employees, mismanaged employee funds that have been put aside by the employees themselves in order to receive a year-end bonus. These funds are part of the employees’ total cost package and as such have been taxed,” Reyneke explained.

Reyneke pointed out that while the employees’ own money was not paid out to them, the Chief Financial Officer thought fit to pay himself 100% of his allocated performance bonus by March 2018. “Denel has admitted that it is experiencing a shortage of approximately R350 million to pay all its creditors, and so far, it could not explain to its employees why money that has been deducted from their salaries during the course of the year to pay their bonuses with is not paid out to them, and all the while Mhlwana has granted himself a full performance bonus,” Reyneke said.

Reyneke also said these actions by Denel’s management are criminal and totally unscrupulous. “There is no excuse to squander employees’ hard-earned money without their permission while the onus was on the company to have invested it on their behalf,” Reyneke said.

“Solidarity is filing this charge on behalf of its members who deserve justice and fairness,” Reyneke said.

Charges are being filed with the National Director of Public Prosecutions, the Gauteng Director of Public Prosecutions as well as the Control Prosecutor at the Commercial Crimes Unit.

To peruse the charges, click here.