State firm Denel says accepts CEO resignation

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JOHANNESBURG, May 15 – State-owned defense equipment company Denel said on Tuesday it had accepted the resignation of group chief executive officer Zwelakhe Ntshepe, with immediate effect.

Denel said it had appointed the chief executive of subsidiary Denel Aeronautics, Michael Kgobe, as acting group CEO in the interim.

It said Ntshepe, who had been with the company for 20 years and was appointed into the group CEO position six months ago following a two-year acting period, had cited personal reasons for leaving.

Kgobe, who has an aeronautical engineering background, has been with the company since May 2000 and was appointed the chief executive of Denel Aviation, the precursor to Denel Aeronautics, in 2010.

Denel said its board was focused on a turnaround that would deal with the current liquidity and performance issues the company was grappling with.

Last month, public enterprises minister Pravin Gordhan appointed an interim board for cash-strapped Denel, the latest in a string of state-owned enterprise to undergo a shake-up due to governance and liquidity issues.

-(Reuters)