South Africa’s embattled state arms manufacturer Denel has appointed Talib Sadik as interim chief executive. Sadik currently serves on its board of directors.
His appointment comes after Danie du Toit resigned as CEO after less than two years in the job. Denel has struggled to pay staff due to a liquidity crisis aggravated by the COVID-19 pandemic.
Du Toit has not given a reason for resigning, but in a recent interview, he told Reuters the company may not survive the next few months unless the government lets it use some promised bailout funds to generate revenues rather than repay debt.
Sadik has worked on the company’s latest turnaround plan. The recruitment process for a permanent CEO is under way.
Denel, which makes equipment ranging from armoured vehicles to missiles, is embroiled in a dispute with labour unions over outstanding salaries and statutory obligations such as paying into its employee pension fund.
Sadik worked as Denel chief executive between 2008 and 2012 and has worked on the company’s latest turnaround plan, Denel said in a statement. The recruitment process for a permanent CEO is under way. Additional report by Reuters