Denel CFO resigns, extending series of exits

01 March 2021 - 17:39
By Alexander Winning
Carmen le Grange had resigned as Denel CFO. File photo.
Image: REUTERS/Siphiwe Sibeko Carmen le Grange had resigned as Denel CFO. File photo.

State-owned defence company Denel said on Monday that chief financial officer Carmen le Grange had resigned, extending a series of resignations that has deepened a crisis at the struggling firm.

The company, which makes military equipment for SA's armed forces and for export, did not give a reason for the resignation. It depends on government bailouts and has faced liquidity problems that have been aggravated by the Covid-19 pandemic.

Denel's board chair resigned last week, in the same week that the company announced that a handful of other members of the board of directors had departed.

"The board wishes to thank Ms Le Grange for her valuable contributions during her tenure as financial director of Denel," Denel said in an announcement on the Johannesburg bourse on Monday.

A spokesman for the department of public enterprises said the department would comment at an appropriate time.

Denel, a pillar of the country's once-mighty defence industry, is one of a handful of loss-making state firms SA is trying to return to profitability.

Although the government has approved a turnaround strategy for Denel premised on asset sales and equity partnerships, few have materialised. 

- Reuters