Debts of state-owned entities revealed

The cash-strapped‚ state-owned arms manufacturer Denel had debts at the beginning of November of about R687m which were 30 days or older‚ Public Enterprises Minister Lynne Brown has said in a written reply to a parliamentary question.

Public Enterprises Minister, Lynne Brown. Pic: Trevor Samson. © Business Day.

Of the debt owed to suppliers‚ R266m was older than 30 days; R86m older than 60 days; R185m older than 90 days; and R151m older than 120 days. In total‚ the company had 1‚557 supplier invoices that had not been paid for 30 days or longer.

Brown cautioned in her reply to DA MP Solly Malatsi’s question that at least 30% of creditors were common throughout the group and that the same supplier could be listed for each category of aging invoices as it delivered goods and services at different stages.

Last month‚ Denel confirmed it was experiencing “severe liquidity challenges” which led to fears — subsequently allayed — that it would not be able to pay salaries at the end of the month. It said these liquidity challenges meant suppliers were not being paid.

Brown also revealed that Eskom had R102.3m in outstanding creditors in November‚ R82m of which was older than 30 days. Transnet had R728.3m outstanding‚ of which R658m was older than 30 days and R44m longer than 120 days.

Embattled state-owned regional airline South African Express had R382m in debts outstanding to creditors‚ of which R81.3m was current; R110m more than 30 days; R74m more than 60 days; R24m more than 90 days; R19m more than 120 days; and R73m more than 150 days.

By: Linda Ensor – BusinessLIVE

Source: TMG Digital.

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