Denel names Talib Sadik as interim CEO
CEO Danie du Toit left on Friday after not even two years in the post and amid a liquidity crisis
Denel has appointed nonexecutive director Talib Sadik as the interim CEO, the chair of the board Monhla Hlahla announced on Monday.
Sadik, who is a chartered accountant, was Denel’s CEO from 2008-2012 and has a stellar reputation. Under his leadership, Denel was profitable and a strong player in the defence equipment market. He takes up the interim position after CEO Danie du Toit, appointed less than two years ago, completed his last day at the state-owned arms manufacturer on Friday.
In a statement, Hlahla said the board was continuing its efforts to transform Denel into “a sustainable defence and advanced manufacturing company” and wished to assure all employees, suppliers, customers and all other stakeholders that the board’s focus on the turnaround strategy was the top priority.
Denel is in a liquidity crisis and has been unable to pay full salaries since May. Hlahla said that “the shareholder [the department of public enterprises] and the board continue to find solutions to resolve the short-term challenges of the company”.
Although Denel received an appropriation of R573m in the February budget, that money may only be used to repay debt and cannot be used for operational costs.
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