Fin24

New chief for Infraco

2011-03-15 14:38

Johannesburg - Andrew Shaw has been appointed interim CEO of Broadband Infraco, the public enterprises ministry said on Tuesday.

It said that Minister of Public Enterprises Malusi Gigaba has seconded Shaw from the department.

This followed the resignation of Dave Smith as CEO of the state-owned telecoms infrastructure provider.

"Dr Shaw's secondment will allow sufficient time for the board to engage in a process to recruit a new CEO," the ministry said.

Smith resigned last month.

At the time, Business Day reported that an audit report by Deloitte contained allegations of irregularities at Infraco.

"The minister has noted the breaches mentioned in the internal audit report and takes a dim view of the lack of systems and apparent lapse in leadership by the board and management in critical moments."

Shaw must ensure that Infraco complies with remedial actions proposed in the audit report and oversee disciplinary actions arising from the report.

"He will supervise the forensic investigation into the affairs of the company, which has already been commissioned by the board, and undertake commercial and legal due diligence on all major financial contracts conducted during the past two years, and to inform the shareholder and the board accordingly," the ministry said.

Shaw was the acting director general of the department of public enterprises from March 2010 to January 2011.

The ministry said Shaw's normal function at the department was deputy director general: transport, leading a team with responsibility for shareholder oversight on behalf of government of Transnet, SA Airways and SA Express.