• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

Meltdown at Armscor?

Oct 24 2012 13:44 James-Brent Styan

Related Articles

Canned deal: Armscor gets back R9.1bn

MK boss to chair Armscor

Armscor still after R3bn from Airbus

 

Cape Town - State-owned arms company Armscor appears to be falling apart, with a civil war raging in the boardroom.

The major issue seems to be chairperson Mojo Motau's refusal  to vacate his position after he was fired by the previous minister of defence.

Motau was fired by former minister of defence and military veterans Lindiwe Sisulu on July 11, when she sent a letter to Motau informing him of this. She also appointed Refiloe Mokoena as the new chairperson of the Armscor board.

However, Sisulu was posted to another department in a cabinet reshuffle the next day.

Motau then simply stayed on and refused to acknowledge the resignation.

It is not clear why Sisulu fired Motau but one reason could be a controversial strategy designed to turn Armscor around.

This strategy, entitled Repositioning Armscor: Strategy through the 21st Century was rubbished by several experienced Armscor senior management members as “a document that shows an abysmal lack of understanding of the business in general and the technicalities in particular”.

The strategy was particularly at odds with the proposal to establish a “Defence Material Organisation” in the Defence Review.

According to DA MP David Maynier, the strategy was also not supported by the defence department.

New Minister of Defence and Military Veterans Nosiviwe Mapisa-Nqakula has confirmed in reply to a parliamentary question that Motau is still in his post.

Meanwhile, however, several other senior management officials are still suspended after questioning the Armscor strategic plan. Two have been fired.

Maynier said the board and senior management of Armscor have been engaged in what amounts to a “civil war” for years.

“There needs to be clarity and direction. This is not happening,”’ said Maynier.

Armscor appeared before parliament's portfolio committee on defence on Wednesday.

 - Fin24

Follow James-Brent Styan on Twitter @jamesstyan.

 
armscor

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
29 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...