Denel CFO Odwa Mhlwana has been placed on special leave pending a disciplinary process into allegations of misconduct against him.
Denel on Monday said its board has taken this step for the purposes of creating a conducive environment that will allow for the start of a verification process in respect of the allegations of misconduct against Mhlwana.
The process will be presided over by an independent chairperson and should be completed by the end of July.
Denel said that, since the new board’s appointment in April, various whistleblowers have presented a number of allegations of serious misconduct against Mhlwana, as well as other senior Denel employees.
The board is verifying the allegations against the other senior employees.
Trade union Solidarity said Mhlwana’s suspension was another step in the direction of restoring union members’ confidence in the Denel board and executive management.
“There is an expectation among employees that firm action will be taken against executives who violate rules in the same way as employees who fail to perform their duties are dealt with,” Solidarity deputy general secretary Deon Reyneke added.