"On the one hand UASA is pleased that workers will hopefully not have to live under the dark cloud of possible non-payment any longer," spokesperson of UASA, Stanford Mazhindu, said in a statement.

"But on the other hand Denel – while thanking Treasury for its trust and support of the new board – should not forget that the bailout is paid with taxpayers’ hard-earned money that should be put to use to make the company profitable again and without corruption." 

Denel has said it will use the grant towards its turnaround plan, focusing on managing its supplier base, executing projects on time and within budget, the union said. 

It also said that the company would dispose of non-core assets on an "urgent basis" and establish strategic equity partnerships across various divisions of the company.

The bailout was granted after Denel struggled to pay its 3 700 employees on time or to contribute to their medical aids and tax contributions.

ANA