The chief executive and two senior managers of arms procurer Armscor have been suspended, the News24 website reported on Friday.
They were told on Thursday to vacate their offices immediately, and were prohibited from speaking to employees or the media about the matter.
Sipho Thomo has been chief executive since 2000. The two managers are business division head Jan De Necker and senior sales manager Boet van Staden.
De Necker and Van Staden have been in the service of Armscor for 17 and 34 years respectively. Both were primarily involved in the sale of army equipment.
Popo Molefe, chair of the board of directors, was appointed on Thursday as acting chief executive until the completion of a forensic probe into the suspended trio.
Molefe said the suspension followed allegations of administrative irregularities.
”The board hopes to complete the investigation swiftly, fairly and objectively,” he said.
”I want to state categorically that we regard the employees as innocent until the investigation proves otherwise.”
Molefe said the probe would get under way soon. The three were suspended to help ensure a fair inquiry.
”We hope to complete it soon as it causes pain and insecurity for those involved to be placed in the spotlight all the time.”
News 24 said the alleged irregularities could be connected to a variety of incidents. One apparently relates to the handling of a destruction contract for obsolete army ammunition. The suspension might also be linked to the handling of a donation of military vehicles to the South African National Museum for Military History.
This matter made headlines recently when military police arrested the curator and two museum employees because some of the equipment at the museum was still ”in service”.
Another possible reason for Thomo’s suspension was apparent differences between him and defence secretary January Masilela and Denel chief executive Victor Moche, said the website. – Sapa