Denel announced Wim de Klerk's appointment following the dismissal of Odwa Mhlwana.
Willem “Wim” Abraham De Klerk will be taking over as interim group chief financial officer, with immediate effect from Odwa Mhlwana, who was dismissed following a disciplinary process for allegations relating to mismanagement.
De Klerk’s appointment as interim group CFO is intended to help build and strengthen a sound internal control environment to enable Denel to restore its position as a strategic national asset and a credible industry leader to key stakeholders.
De Klerk is a certified CA(SA) and has participated in post-graduate executive programmes from Darden and Harvard.
Prior to his new role as CFO, he served as the chief executive officer at ArcelorMittal SA.
The disciplinary process against Mhlwana commenced in June and concluded this month, bringing to an end one of the key steps that the Denel board has taken to stabilise the business and ensure effective oversight over the company, since it was appointed in April.
In the press release announcing De Klerk’s appointment, Denel Board Chairperson Monhla Hlahla said:
“It is a priority for Denel to rebuild its reputation and restore its credibility with stakeholders, suppliers, partners and the South African public. One of the objectives is to normalise its capital structure and inject liquidity into the business.”
Monhla says that the board is relieved and can now move its focus into other equally important matters to turn around the company.
“The reputational damage the company suffered had led to a loss of confidence from stakeholders, including funders and primarily bankers, who in turn were unwilling to extend credit facilities to the company. The turnaround is also meant to inculcate a culture of governance underpinned by ethical values and integrity, ensuring sound internal controls and restore the company’s position as a strategic national asset and industry leader.”
In the announcement, Denel said the recruitment process for the permanent position of group CFO will now commence.