Denel boss quits
Zwelakhe Ntshepe's resignation is effective from today with Michael Kgobe appointed to act in the position while a full-time successor is being sought.
Pressure has been mounting on Ntshepe following weekend reports detailing his alleged involvement in awarding a bursary of R1 million to the son of embattled North West Premier Supra Mahumapelo.
It is alleged that Mahumapelo's son received a bursary from Ntshepe to attend an aviation school.
Minister of Public Enterprises Pravin Gordhan told a media briefing ahead of his department's budget vote that Kgobe's appointment will ensure stability at Denel.
"We have chosen Mr Mike Kobe, who's currently the head of Denel Aviation, as the acting CEO of Denel and you will have a new acting CEO in place. There will be no vacuum left in that regard."
The new Denel board has also been tasked to look into Denel's financial dealings.
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"They have been asked to review all the forensic reports look into all the information by Denel Asia and other gymnastics that have been going on in this particular entity.
"I am confident that the new board will play a major role in stabilising Denel and will meet some of the requirements that I set out earlier on," Gordhan said.
Denel was plunged into a liquidity status last year, which resulted in the delays of payments to suppliers.
The company was forced to cancel a controversial deal with VR Laser, involving the Gupta family, after setting up Denel Asia in 2016.