The High Court in Pretoria has ordered state arms manufacturer Denel to urgently pay over Unemployment Insurance Fund and taxes deducted from employees’ salaries.
Trade union Solidarity approached the court on Tuesday seeking the order after it emerged that Denel had been withholding the employee contributions.
The company has been crippled by cash flow problems for a while now and had to recently obtain bridging finance to pay salaries.
Solidarity said it approached the courts after it emerged that Denel was deducting taxes and UIF contributions from employee salaries but not paying them over to the required bodies.
Today, the court ordered Denel to pay over the monies which have been withheld for several months as a matter of urgency.
The trade union accused the arms manufacturer of misusing taxpayer funds.
The ailing company remains cash-strapped, with employees only receiving about 85% of their salaries for the months of June and July.
Solidarity said it had launched a process to investigate former board members for mismanagement and corruption.
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