The Embattled State Arms Firm Denel Suspends CFO

PICTURE: BizNis Africa

JOHANNESBURG: Reforming troubled state-owned entities such as Denel is a top priority for President Cyril Ramaphosa as he strives to put the sluggish economy back on a sustained growth trajectory.

South African state-owned arms manufacturer Denel, which has been struggling to pay salaries to staff, has suspended its chief financial officer Odwa Mhlwana while it conducts a probe into allegations of misconduct by him, the firm said on Monday.

According to a statement issued by Denel on Monday, the board had taken the decision to create a “conducive environment” for the “verification process” in respect of the allegations made.

“The verification process will include interviews with Mr Mhlwana’s colleagues, such that putting him on special leave is also in the interests of fairness to him, his colleagues and Denel,” the statement read.

Mhlwana’s special leave is effective from June 18 until the disciplinary process is completed. An independent chairperson will preside over the process, it is expected to be completed by the end of July 2018.

Mhlawana, a chartered accountant, was appointed CFO of Denel in 2017. He was previously the CFO for Denel Vehicle Systems and had also worked as a Finance Director for BAE Land Systems and CFO of the consumer section at FNB.

Reforming troubled state-owned entities such as Denel is a top priority for President Cyril Ramaphosa as he strives to put the sluggish economy back on a sustained growth trajectory.