Automotive Industry Development Centre Eastern Cape suspends CEO amid governance investigation

The Automotive Industry Development Centre Eastern Cape (AIDC-EC) has placed its CEO, Thabo Shenxane, on precautionary suspension pending investigations into alleged transgressions and concerns over the organisation’s internal culture.

In a statement on Thursday, the AIDC-EC board announced that Shenxane's suspension took effect immediately and said the decision followed investigations into alleged misconduct within the entity, as well as concerns that workplace culture had begun to negatively affect business operations.

“The board of AIDC-Eastern Cape has resolved to place the CEO, Mr Thabo Shenxane, on a precautionary suspension with effect from 25 June 2026,” the board said.

“This decision follows investigations on alleged transgressions within the AIDC-EC; and concerns regarding the internal culture that started to impact negatively on business operations.”

The board said it had appointed an acting CEO with immediate effect to ensure stability and business continuity while investigations continue.

“The board continues to treat all allegations and the ongoing internal investigations with the utmost seriousness, fairness and respect,” it said.

The board also requested space to resolve the matter within the confines of legal processes.

The AIDC-EC board has not disclosed the nature of the alleged transgressions under investigation, nor indicated when the process is expected to be concluded. Shenxane has not publicly commented on the suspension.

The suspension comes five months after the Democratic Alliance raised concerns about governance, workplace culture and internal controls at the agency, which plays a key role in supporting the Eastern Cape’s automotive industry.

In January, DA Shadow MEC for Economic Development, Environmental Affairs and Tourism, Dr Vicky Knoetze, said the party had seen internal documents submitted by anonymous staff members to the AIDC board raising concerns about governance and operational matters.

The allegations reportedly included claims directed at Shenxane, whose contract had recently been extended for another five years, as well as broader concerns regarding workplace culture and organisational management.

Knoetze also referred to allegations involving the East London office, including claims that its operational status may have been misrepresented to the board and that staffing and office arrangements may not have been aligned with organisational needs.

At the time, she said responses from the AIDC-EC board indicated that internal processes had been initiated to investigate concerns raised by staff and that internal audit reviews were under way.

However, she noted that there had been no publicly available findings or outcomes from those processes.

The developments are significant for the Eastern Cape economy, given the strategic role played by AIDC-EC in supporting one of South Africa’s most important automotive manufacturing hubs.

The province hosts major automotive manufacturers and component suppliers, with the sector supporting thousands of jobs and contributing significantly to exports and investment.

The agency has also been central to efforts to position the province for the transition to electric vehicles, including the development of an Electric Vehicle Strategy and Roadmap aimed at improving charging infrastructure and enhancing the province’s competitiveness in the evolving global automotive market.

Knoetze previously warned that allegations of governance weaknesses or internal dysfunction at a key development agency could undermine investor confidence and have wider economic consequences.

“At a time when the global automotive industry is transitioning from internal combustion engine vehicles to electric vehicles, the Eastern Cape must maintain policy certainty, institutional stability, and effective implementation to remain competitive,” she said.

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