CAPE TOWN - Public Enterprises Minister Pravin Gordhan on Monday, announced the appointment of an interim board for South Africa's cash-strapped state-owned arms manufacturer, Denel.
Monhla Hlala, former chairwoman of the Airports Company of South Africa, has been appointed board chair, according to a statement from the ministry.
The rest of the interim board are Zoli Kunene, Tshilidzi Marwala, General TT Matanzima, Gloria Serobe, Talib Sadiq, Sue Rabkin, Sibusiso Sibisi, Cheryl Carolus, Nonzukiso Siyotula, Thami Magazi, and Martin Mnisi.
Denel is the latest in a string of state-owned enterprise to undergo a shake-up due to governance and liquidity issues.
In the statement, Gordhan said he had started talks with Denel's key stakeholders on Monday, including unions and suppliers of the arms manufacturer a concern over the deteriorating state of affairs mounts.
"Between 2010 and 2016 Denel experienced phenomenal growth, averaging over 15 percent per annum, with revenue growing from just over R3 billion to over R8 billion in 2016. The company was winning significant export contracts and the order book peaked at R30 billion," said Gordhan.
"This positive storyline has deteriorated significantly because of bad decisions."
Gordhan highlighted the insistence of the previous board to go ahead with the Denel Asia venture, which had "deeply tarnished the Denel brand".
"Denel now faces the real threat of collapse unless far-reaching decisions are taken urgently," he said.
"The new interim Board will be required to move with speedy on some of the areas that need urgent attention."