State-owned arms manufacturer Denel on Monday reaffirmed the validity of its decision to appoint Daniel du Toit group CEO, after stakeholders raised concerns.

Du Toit’s appointment was announced in December.

Denel noted in a statement that Du Toit had been appointed after a thorough, transparent and rigorous recruitment process that searched internally and externally for the most suitable candidate.

Public Enterprises Minister Pravin Gordhan and Cabinet also approved the decision.

Denel asserted that Du Toit was the right person to lead the company in the next phase of revitalising the business and restoring confidence among investors, clients, partners and suppliers.

“Du Toit’s appointment was made with eyes open to the racial and gender imbalances in our country,” said Denel chairperson Monhla Hlahla.

Denel said in its statement that Du Toit was a distinguished industry leader with wide ranging experience in the defence, technology and aerospace environments, predominantly in the private sector. 

“During his five-year tenure at Denel, he will build on the turnaround strategy introduced by the board in 2018 and lead the efforts to restore Denel’s position as a global technology leader and one of the top defence companies in the southern hemisphere,” the State-owned entity said.

Denel’s executive team currently comprises three African males, one African female, three white males, including Du Toit, one Indian male and eight vacancies.

“The group CEO is tasked with streamlining the executive team and appointing a diverse team with the right skills set to take the company forward,” said Hlahla.

Du Toit has a Masters of Commerce degree and has completed the executive development programme from Gordon Institute of Business Science.

Hlahla said Du Toit would be critical in strengthening the executive management capacity of the company.

He joined Denel after having recently vacated the position of MD at SAAB Medav Technologies in Germany.

Meanwhile, Denel last month revealed that it had suffered a R1.8-billion loss in the 2017/18 year following seven years of modest profits.

Hlahla said Denel's immediate priority was for the company to return to profitability and operational sustainability.