Former Denel chief executive Victor Moche, who was fired from his position by Public Enterprises Minister Alec Erwin on Friday, is ex pected to walk away from the parastatal with a golden handshake of about R3 million.

Although the company is expected to begin negotiations for an exit package for Moche in the next few days, City Press has learnt from a reliable source that Erwin's action will cost the parastatal to buy- out the former executive who still had more than a year left in his job.

Insiders at the department said "it's widely expected that the cost of paying him out will be in the region of R2,5 million to R3 million".

Announcing Moche's axing in Parliament, Erwin said: "Moche has led a process of restructuring in Denel that now has to be taken further. There is agreement that this will be best done by handing the change baton to a new CEO. Accordingly, after a tough and successful stay at Denel, Moche will hand over to Shaun Liebenberg at the end of May."

This has led to concern at the department about Liebenberg not going through the security vetting process by the National Intelligence Agency (NIA). This is said to be a standard requirement for any high-profile appointment at the arms parastatal.

"It's an open secret that people who need to occupy sensitive positions like that at Denel must first go through security checks by NIA.

"People who work for Denel, as well as any sensitive arms manufacture like Armscor, are high on the shopping list of foreign agents. Liebenberg's appointment could compromise Denel's position," said a source.

NIA spokesperson Lorna Daniels would not confirm whether Liebenberg had gone through a security clearance by the agency.

"The issue of whether Liebenberg has gone through security is something between NIA and the person involved. We don't disclose any information of this nature," she said.

Denel spokesperson Sam Barsch said although Liebenberg had not taken up his job, "it is hoped that type of thing (security checks and vetting) will be done before he takes over".

Barsch said he was not at liberty to speak about the amount Moche would receive as a "golden handshake" and Erwin's spokes person, Gaynor Kast, declined to comment yesterday.

Erwin has come under severe criticism for his replacement of Moche, with some within the department and the ANC saying the axing amounted to "flushing-out black chief executives from government parastatals".

The sources repeated their assertion that the axing of Moche was in line with Erwin's moves. "His actions are anti-African moves which are coated with communist rhetoric."

During his speech, Erwin also announced the removal of his director-general Dr Eugene Mokeyane and his replacement with Portia Molefe as the acting director-general.

Insiders within the department contend that Erwin appears more comfortable with Molefe, who is coloured and Afrikaans-speaking.

Erwin said: "the DG and I have assessed the situation and taken into account his own personal preferences as to a career path and my requirements of the DG and we have reached a satisfactory solution that meets all our needs and allows the DG to pursue his career elsewhere.

"Dr Mokeyane will leave the department this month. I thank him for his work and manner in which he applied himself to this difficult task. I wish him well in his new endeavours."

Meanwhile, City Press has learned that the departure of Dr Rueul Khoza from the position of chairperson of Eskom could pave the way for the appointment of former environmental affairs and tourism minister Valli Moosa.

There's speculation Moosa, who is now in business, could become the next chairperson of Eskom following Khoza's departure in June.

With acknowledgement to the City Press.