Johannesburg - The CEO of Denel Zwelakhe Ntshepe has resigned from the company with immediate effect, after serving as its head for six months.
The State arms manufacturer confirmed on Tuesday that the board received and accepted Ntshepe’s resignation.
Ntshepe was appointed CEO in October 2017, after serving in an acting position for two years.
He has cited personal reasons for his resignation.
He has been with company for 20 years.
Denel’s board has appointed Michael Kgobe at the acting CEO, he currently served as the chief executive of Denel Aeronautics.
Board chair Monhla Hlahla said the board was focused on implementing a turnaround strategy at company in order to deal with the liquidity issues.
Ntshepe took over the helm when the company was facing massive cash flow issues and had to receive a cash injection to ensure that it was able to pay salaries.
In recent weeks, Ntshepe has been facing backlash over a R1.1 million bursary that Denel awarded to the son of North West Premier Supra Mahumapelo.
City Press reported that Ntshepe had personally signed the contract between Denel and Supra Oarabile Mahumapelo in January. This was besides the fact that Oarabile had been late to submit his application.
The contract would ensure that the arms deal manufacturer would pay for his accommodation, flight classes and laundry, the newspaper reported.
Public Enterprise Minister Pravin Gordhan appointed a new board in April to implement a turnaround strategy at Denel.