Denel asks for another bailout to execute its turnaround strategy

[Jan]

Give us more money — Denel

Denel said it needs significant cash injections to support current operations and implement a new operating model.

The company released a statement yesterday promoting its new turnaround strategy to produce a “streamlined and refocused Denel”.

 

[ToxicBunny]

No.

 

[borro]

This time will do gud job.

 

[Pineapple Smurf]

 

[karnuffel]

Do all the SOEs share a folder in which they save their turnaround strategies? Might be handy and save some time to just reuse.

 

[Pegging]

I know where 30 Billion went.

Denel lost R30bn in deals due to Gupta bribes | City Press

State arms company Denel lost more than R30 billion in contracts to supply weapons because a former executive insisted that kickback contracts be signed with the Gupta family.

www.news24.com

There was no conflict in Gupta-funded overseas trips, ex-Denel chair tells Zondo commission | Business

Ashu Chawla, who paid for Daniel Mantsha’s trips, has been implicated in Estina dairy project corruption allegations.

www.news24.com

 

[PAYBACK]

An uglier Brad Pitt stunt double, a Brad Pitt groupie and a window dresser walk into a bar.....

 

[RonSwanson]

The company plans to offer its command and control, cybersecurity, and communications products in existing and new markets.

Which military organisation would buy products from a company that failed to protect its own Intellectual Property?

 

[Pythonista]

Fark off ...

 

[itareanlnotani]

It's a good thing that the ANC has a money tree where money grows. I mean if they had to borrow money to keep paying for all this SoE BS, we'd be in trouble.

 

[KikzAzz]

Show me one instance where their was a return on investment on funds that were invested in a SOE?

 

[itareanlnotani]

Show me one instance where their was a return on investment on funds that were invested in a SOE?

See China.

 

[SilverCode]

The company I work for is no stranger to hard times, but in every single case where we have skirted the line of going out of business, we have downsized the company and brought spending inline with revenue. Then we have gone to investors with a proper business plan and asked for money to grow the company again. In the private sector if you approach an investor and ask (demand?) money with no proof you are serious about cutting costs and presenting no real business plan you will be laughed out of their office.

Why would the SEO be any different? Reduce your costs, do the reorganization you want to do, get rid of the redundant departments, then take your business plan to the Tax payers and ask them for help. Otherwise you get your R30bn, make no changes because why bother when you have money to continue down the same path, and then return a year late cap in hand because you need more money "to implement your turn around strategy".

 

[Shadowchaser1]

Seriously? What can Denel offer that's not 3rd or 4th Generation weapons? Which Western/European countries have bought in the last 5 years any 5th or 6th Generation weapons from SA? When have Denel started to test possible 7th Generation weapons? What are their plans for future expansion? Your Rooivalk is 4th generation and can't be really upgraded. Your Airforce is basically non existent, with about 17 fighter aircraft, 7 Special mission Aircraft, 22 Transport aircraft (Of which 2 is about 60 years old), 88 Trainer Aircraft, 82 total helicopters & 12 Attack helicopters. (All 4th generation and not upgradable). Your Army & Navy is even worse off, also 3rd and 4th Generation.

What experience does the new CEO have? Ask and get? Military, PMC or industrial espionage? So Denel can provide better products than DARPA, Skunkworks, Lockheed Martin, Chengdu Aerospace, British Aerospace, BAE Systems, Airbus etc? Seems there is no clear plan for Denel.

 

[Benedict A55h0le not]

Seriously? What can Denel offer that's not 3rd or 4th Generation weapons? Which Western/European countries have bought in the last 5 years any 5th or 6th Generation weapons from SA? When have Denel started to test possible 7th Generation weapons? What are their plans for future expansion? Your Rooivalk is 4th generation and can't be really upgraded. Your Airforce is basically non existent, with about 17 fighter aircraft, 7 Special mission Aircraft, 22 Transport aircraft (Of which 2 is about 60 years old), 88 Trainer Aircraft, 82 total helicopters & 12 Attack helicopters. (All 4th generation and not upgradable). Your Army & Navy is even worse off, also 3rd and 4th Generation.

What experience does the new CEO have? Ask and get? Military, PMC or industrial espionage? So Denel can provide better products than DARPA, Skunkworks, Lockheed Martin, Chengdu Aerospace, British Aerospace, BAE Systems, Airbus etc? Seems there is no clear plan for Denel.

There is a clear plan. Get a R30bn bailout from tax payers. Bailout requests have been fullfilled numerous times.

 

[Corelli]

Go ask the Guptas for money. You gave them all our state military secrets. Personally I would line the entire Denel up infront of a firing squad for treason. Because honestly by giving away our weapons design and military craft secrets, they have all committed high treason.

 

[Corelli]

The Cape Gangs would be able to run Denel far better than anyone at Denel. Let the gangs have a share. We will see arm sales go through the roof. They would make more money from arm sales than drugs.

 

[rvZA]

Lol, they will get it whether we like it or not. Live with it.

 

[markings]

See China.

there they fire and maybe even shoot corrupt managers, not reward them with alternate, maybe even better paying positions.

 

[itareanlnotani]

there they fire and maybe even shoot corrupt managers, not reward them with alternate, maybe even better paying positions.

They don't get typically get shot (unless its related to something particularly grievous - like contaminated milk, where deaths have occurred), but they do get free board and housing in government accommodation (sometimes for life!), and all their belongings confiscated.

For example Life Esidimeni - if that happened in China, the people responsible would have likely got the death penalty.

Death penalty does happen, but its quite rare in comparison to long sentencing.

No death penalty

China sentences former senior ICBC banker to life for bribery

China sentenced Gu Guoming, a former senior banker at Industrial and Commercial Bank of China (ICBC) (601398.SS), to life in jail after being found guilty of bribery, state media said on Thursday.

www.reuters.com

How China's Massive Corruption Crackdown Snares Entrepreneurs Across The Country

Chinese officials boast their campaign against "evil" has busted over 50,000 supposed criminal organizations, but experts warn it has served another function: consolidating power.

www.npr.org

Death Penalty

China finance official executed in bribery case

BEIJING (AP) — The former head of a Chinese state-owned asset management company was executed Friday on charges of taking bribes in an unusually severe penalty for a recent corruption case.

apnews.com

(Drug smuggling - allegedly tit for tat for Canada Huawei, imho it probably is.., but you play with fire, you get burnt)

Chinese Court Rejects Canadian’s Appeal of Death Sentence for Drug Trafficking

Robert Lloyd Schellenberg initially received 15 years in prison for methamphetamine trafficking. But he was handed a death sentence in a one-day retrial in 2019.

www.nytimes.com