Denel of South Africa Suspends CEO, CFO Pending Investigation

Denel Pty Ltd., South Africa’s state-owned defense manufacturer, said Chief Executive Officer Riaz Saloojee and Chief Financial Officer Fikile Mhlontlo have been put on special leave pending an investigation by the company.

“We have no details of the reasons,” spokeswoman Vuyelwa Qinga said in an e-mail on Friday to confirm the suspensions, which were earlier reported by financial website Fin24. The company has appointed staff to replace the executives on an acting basis while the probe is conducted, she said.

Public Enterprises Minister Lynne Brown appointed Daniel Mantsha as chairman of Pretoria-based Denel in July alongside eight new non-executive directors. The company’s profit gained 39 percent in the year through March to 270 million rand ($19.5 million).

Before it's here, it's on the Bloomberg Terminal. LEARN MORE