JOHANNESBURG (Reuters) – South Africa’s High Court ordered state arms maker Denel to hand over millions in employees’ tax payments to the government, union officials said – a case that has refocused attention on cash-strapped state firms and their drain on the economy.
The Solidarity union sued Denel last month, accusing it of deducting tax and other payments from employees’ salaries then failing to hand the cash over to the South African Revenue Service (SARS) and other bodies.
Solidarity - Tuesday - Ruling - Victory - Fight
Solidarity claimed Tuesday’s ruling as a victory in what it described as a broader fight to hold state firms to account. A Denel spokeswoman it had not received details of the ruling but would meet its obligations. She said Denel had approached SARS to see if it could delay payments.
The lawsuit came after Denel, a cornerstone of South Africa’s once-mighty defense industry, said it would not be able to pay employees their full salaries in June and asked the government for a 2.8 billion rand ($182.43 million)...
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The only change you ever get from the goverment is what's in your pocket, and worth less every day.