Publications
Partners
Johannesburg - State-owned satellite company Sentech should fire both its board and its CEO Sebiletso Mokone-Matabane, Business Report said on Monday.
This followed suggestions made in a report of the task team Communications Minister Siphiwe Nyanda appointed last year to investigate turnaround strategies for Sentech and the SABC.
Business Report said the signal distributor was budgeting for a net loss of R123m for the 2009/10 financial year as a result of discontinued operations such as MyWireless.
However, it said Sentech's loss could increase to R214m if losses of R91m by broadband services MyWireless, BizNet and Vsat were included.
"This amount was not disclosed to the department of communications by Sentech in its corporate plan."
Sentech was discontinuing its failed broadband services, the newspaper said.
According to the report by the task team, not everybody on Sentech's management had signed the exit strategy for MyWireless, creating doubt that the decision carried every director's approval.
There was speculation that the board would be fired this week, Business Report said.
"The task team found that the chief executive failed to create the correct environment to monitor performance and compliance.
"The report found a 'lack of adequate leadership and oversight' at the parastatal."
Business Report said the team had also established that increases had been approved for executives by the board in spite of the company's dismal financial performance.
- Sapa
