The Denel Board of Directors has put the Group Chief Financial Officer (GCFO), Mr Odwa Mhlwana, on special leave pending a disciplinary process into serious allegations of misconduct against him.

The Board has taken this step for purposes of creating a conducive environment that will allow for the commencement of a verification process in respect of the allegations of misconduct against Mr Mhlwana.

The verification process will include interviews with Mr Mhlwana’s colleagues, such that putting him on special leave is also in the interests of fairness to him, his colleagues and Denel.

Mr Mhlwana is therefore on special leave, effective today, 18 June 2018, and until the disciplinary process is completed. The process will be presided over by an independent Chairperson and should be completed by the end of July 2018.

Since its appointment two months ago, the Denel Board has been approached by various whistle-blowers presenting a number of allegations of serious misconduct against Mr Mhlwana and a few other senior employees of Denel; which still need to be verified before any action can be taken against anyone.

The Denel Board of Directors is in receipt of a number of serious allegations by whistle blowers, since its appointment on 8 April 2018. In terms of governance process, the Board’s Audit Committee reviews and considers actions on each allegation. Where an investigation is concluded, the Audit Committee guide the Board and or Executive Committee on required actions and responses.

The current investigations were concluded while the Board was managing the 2018 financial year end and exploring, with debt providers, the most optimal strategies to relieve the Company of its short-term liquidity constraints.

The Board is therefore appreciative of all the whistle blowers, and commits to review all the allegations received.

Ends

_____________________________

For further information, contact:

Vuyelwa Qinga

Group Executive: Communication & Public Affairs

Cell: +27 (0) 79 511 6257
Tel: +27 (0) 12 671 2662
email: VuyelwaQ@denel.co.za

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