CAPE TOWN South Africa (Xinhua) --
A South African cabinet minister on
Thursday denied media reports that the government has decided to
sell a majority stake in the state-owned arms manufacturer Denel.
Such reports may
send a wrong message to the industry and the financial markets
during sensitive negotiations on Denel’s financial situation,
Minister of Defence and Military Veterans Nosiviwe
The Business Day
newspaper reported on Wednesday that the government aims to
optimize Denel’s financial position by selling a majority stake
in the company.
attributed the speculation to a recent parliamentary reply by
Public Enterprises Minister Lynne Brown who reportedly said that
the government had not ruled out selling off its stake in Denel.
confronted by the company have given rise to fears the it would
not be able to pay salaries.
indicated in the response by Minister Lynne Brown, there is no
government decision on the matter and no options presented for
consideration yet,” Mapisa-Nqakula said in a statement.
The report came as both the Department of Defence and its
acquisition agency Armscor were engaging with Denel on its