South Africa appointed a new Chief Executive Officer to state-run arms firm Denel on Thursday, as government tries to turn around the cash-strapped company plagued by years of mismanagement after the previous CEO resigned in May.
Daniel Du Toit is expected to take up the role in January, according to a joint statement by the ministry of public enterprises and Denel’s Board.
“We look forward to working with Mr Du Toit to provide direction to Denel,” said board chair Monhla Hlahla of the former managing director of SAAB Medav Technologies in Germany.
“The reputational damage Denel suffered over the past two years had led to a loss of confidence from stakeholders, including the banking and investment community, who in turn, were unwilling to extend credit facilities to the company.”
South Africa’s state asset manager has quietly bought up almost 90% of Denel’s bonds in the past 12 months, as private investors say they are reluctant to lend to the weapons company because of its previous management’s involvement in a corruption scandal.
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