City Press reports that serious allegations of fraud and a sex scandal have surfaced in the top office of the entity tasked with procuring weapons for the SA National Defence Force.

Armscor CEO Solomzi Mbada is embroiled in a bitter dispute with his board of directors and refused to meet with the entity’s chairperson, Phillip Dexter, and another board member on Friday evening. Earlier in the week, the board had resolved to suspend Mbada on allegations of irregularities surrounding his contract and complaints that he had used his influence to benefit Armscor employees with whom he had been involved in personal relationships. Mbada is also accused of having had personal relationships with junior staff members and of fathering three children with three Armscor employees, whom he has promoted. He denies the allegations. The embattled CEO has also been accused by executives and board members of having been involved in irregularities related to the conclusion of his five-year employment contract. Former defence and military veterans minister Nosiviwe Mapisa-Nqakula allegedly signed off in concurrence with the altered contract, which resulted in Mbada being appointed on a permanent basis – an unprecedented event. Mbada is the only permanently employed CEO of a state-owned company. Defence and Military Veterans Minister Thandi Modise is apparently aware of the impasse between Armscor’s board and its CEO. She has distanced herself from the fraud allegations relating to Mbada’s contract.

• Read the full original of the report in the above regard by Nkululeko Ncana at City Press (subscriber access only)

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