The minister of public enterprises, Alec Erwin, is expected to make major announcements in his budget vote speech tomorrow.

Erwin is expected to announce a replacement for the director general of the department, Eugene Mokeyane.

The most likely candidate to succeed Mokeyane is Portia Molefe, the deputy director-general for corporate strategy and structure in the department.

Molefe worked as adviser to Maria Ramos, the chief executive of Transnet, before she was employed by the department in October last year.

An MBA graduate from Wits university, Molefe has also worked for the department of trade and industry as chief operations officer, and for Investment SA as a regional manager.

A source close to the department said relations between Mokeyane and Ramos were not good, which could be the reason behind Mokeyane's departure.

Briefing the media after yesterday's cabinet meeting in Cape Town, government spokesperson Joel Netshitenzhe said that the cabinet had been briefed by Erwin on management issues at loss-making arms manufacturer Denel and that Erwin would "make an announcement in this regard on Friday" in the national assembly.

It has been widely speculated that Denel chief executive Victor Moche and human resources director Eugene Martin have been suspended or dismissed or had resigned.

Netshitenzhe said the cabinet wanted to emphasise that the changes were taking place "in consultation with everyone who is affected, and this is done with full appreciation of the contribution" of all involved in the best interests of the economy as a whole.

We do not wish ... to question the integrity of anyone who might be involved in this process."

Cabinet had been given "a general briefing" about the state of the company, and the work it had done and was expected to do.

Erwin is also expected to speak about a R400 million programme to rescue Denel and invite international partners into the Rooivalk project, which has been slowed down by lack of cash. He may also provide details of changes to the defence procurement programme in favour of Denel.

He is expected to speak about the turnaround strategy being implemented in Transnet and improvements in governance in Transnet, including risk management systems.

Other topics are likely to include the restructuring of one of the most profitable state companies, Arivia.kom; state policy on forest management; and Alexkor and the land claims by the Richtersveld community.

Negotiations over the future of Alexkor are continuing, and the community's claims will be heard in court on April 25 if no agreement has been reached.

With acknowledgements to Mzwandile Faniso, Lynda Loxton and the Business Report.