State arms manufacturer Denel has announced the resignation of its CEO Zwelakhe Ntshepe with immediate effect. In his resignation letter‚ Ntshepe cited personal reasons for leaving the company.
He has been with the State-Owned Company for 20 years before his appointment to the CEO position six months ago.
The company has appointed the chief executive of Denel Aeronautics‚ Michael Kgobe‚ as the acting Group Chief Executive in the interim.
Corporate Law Professor Tshepo Mongalo says changing corporate culture in SOE’s could be a reason behind some of the recent resignations.
“The reality is that with the new administration we are seeing a more emphasis on corporate culture and corporate governance system in line with best practice, there are those who suit this new corporate culture well and others may not.”