Armscor CEO contract terminated

Thursday, January 21, 2010

Pretoria - After months of uncertainty, arms acquisition company Amscor has decided to terminate the contract of its Chief Executive Officer, Sipho Thomo.

Thomo was suspended in November last year pending an investigation into disciplinary charges.

The board on Wednesday announced that Thomo's contract was terminated with effect from 7 January.

His dismissal is linked to his handling of information about the cost of the country's now cancelled deal to buy Airbus A400M heavy-lift planes.

Thomo admitted that the cost of the air crafts had rocketed from an already steep R17 billion in 2006 to an estimated R47 billion. Cabinet has since decided to scrap the deal.

Armscor said Sipho Mkwanazi will remain the Acting CEO in the interim.

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