Publication: Business Report Issued: Date: 2010-01-20 Reporter: Christelle Terreblanche

Suspended Armscor CEO fired

 

Publication 

Business Report
Date

2010-01-20
Reporter Christelle Terreblanche

Web Link

www.busrep.co.za


Suspended Armscor CEO Sipho Thomo has been fired, amongst others for telling MP's that the A400M Airbus contract would have cost R47 billion, which the state-owned arms procurer said was an inaccurate and misleading figure which had serious legal repurcussions.

Armscor board chairman Dr. Popo Molefe said in a letter to Armscor employees on Monday that Thomo's contract with the body was terminated with effect from 7 January after two days of disciplinary hearings in December.

Thomo was suspended on full pay two mnths ago pending investigations into serious allegations against him.

He has previously refused to resign as requested by the board in early November, saying he has done nothing wrong.

In a notification of the disciplinary hearing send to Thomo by the Armscor Board of directors last month, five allegations are set out, including dishonesty, failing to attend to serious grievances, disgraceful and unbecoming conduct and a dereliction of duties as well as the A400M incident.

Molefe charged that he and his board were never advised to attend a meeting of the National Assembly Defence Committee meeting in October last year where Thomo made the claims about the price tag of the Airbus contract, which has since been terminated by Defence Minister Lindiwe Sisulu.

At the meeting MP's, who had called Armscor to appear before them, denounced the Armscor board for not attending.

Molefe said Thomo's failure to notify the board was disgraceful and caused embarrassment to the board.

He further charged that the misleading price tag had serious legal and reputational repercussions for Armscor and the Department of Defence.

Sisulu has previously said that the revelation damaged South Africa's stature as an honest partner while it was renegotiating the contract with the Airbus Military consortium, which includes several European governments.

Thomo could not be reached for comment Wednesday.

Thomo has furthermore acted in a disgraceful and unbecoming manner in his position by arriving an hour late for Armscor's next meeting with MP's in November embarrassing and undermining both Armscor and Parliament.

He also allegedly failed to carry out the strategic objectives of the arms procurer in terms of instructions given in February last year.

You failed to act in a manner which is to be expected from a CEO, in that, you failed to attend to serious grievances raised by members of senior management, and that during or about October 2009, you were dishonest by advising the Board of Armscor that you had addressed the grievances, Molefe charged.

In a leaked internal memo in November last year senior management had raised a raft of charges against Thomo, such as a dictatorial leadership style and creating a general atmosphere of intimidation and victimization.

In a statement the DA's spokesman on Defence, MP David Maynier, who has been calling for Thomo's axing, yesterday welcomed the decision and called for a full briefing by Armscor on the conditions of dismissal.

With acknowledgements to Christelle Terreblanche and Business Report.