The board of the Automotive Industry Development Centre Eastern Cape has placed Thabo Shenxane, its chief executive officer, on precautionary suspension from 25 June 2026, pending an investigation into alleged transgressions and concerns about the organisation’s culture.
The board said in a statement that the decision was taken after an investigation into internal matters in the AIDC-EC and concerns that the internal culture had begun to affect business operations negatively. It said an acting chief executive had been appointed immediately to ensure stability and business continuity while the process unfolds. The board did not identify the acting CEO, nor did it provide details of the allegations.
The move places renewed attention on governance at an agency that supports one of the Eastern Cape’s most important industrial sectors. The province’s automotive industry is a major source of jobs, investment and exports, and the AIDC-EC is in charge of the Coega Industrial Development Zone, the largest of its kind in the country, and the East London IDZ in KuGompo City.
The suspension also comes only months after Thabo was reappointed for a five-year term as chief executive. In January, the AIDC-EC board said his contract had been extended from 1 January 2026 to 31 December 2030, describing the decision as a vote of confidence in his leadership during a complex period for the automotive sector and related industries.
However, public concerns about the entity had already surfaced earlier in the year. In January, Dr Vicky Knoetze, the Democratic Alliance shadow MEC for economic development, environmental affairs and tourism, said the party had seen internal documents from anonymous staff members raising allegations about governance, workplace culture and operational matters at AIDC-EC.
Thabo was appointed to the position of CEO in January 2021 after serving as head of trade, investment and innovation at the Eastern Cape Development Corporation.
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Chinese vehicle manufacturers continued to record significantly stronger growth than established OEM brands in South Africa during the second quarter of 2026, according to TransUnion's Q2 2026 Mobility Report.
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