Fin24

Mangaung to decide Telkom's fate

2012-12-10 12:06

Johannesburg - Minister of Communications Dina Pule said over the weekend the future of Telkom [JSE:TKG] will be decided at the ANC's elective conference in Mangaung. 

In an interview with the Business Day, Pule said final policy would be determined at the conference that would shape Telkom’s strategy and that of the sector in general. 

"In Mangaung, we will take policy decisions that will guide me on how I should be running the department and the sector in general. But it doesn’t mean that Telkom will not be working. The company is hard at work," she told the newspaper.

She recently put forward a list of proposals to cabinet.

New Telkom board chairperson Jabulane Mabuza said recently that the government cannot determine its strategy.

"The day shareholders give you a strategy, they may as well come and run the business," he was quoted as saying.

"I don't see the government as a shareholder any differently to the other shareholders," he said.

Government owns a 39% stake in Telkom. 

Meanwhile the fixed-line operator faces a bigger fine if the Competition Commission is successful in its bid to increase the R449m fine it received for uncompetitive behaviour.

Telkom shares are trading 1.38% higher at R15.45.

Comments
  • napolita.kio - 2012-12-10 12:21

    Government is the shareholder in Telkom. Government comprises of members of a number of political parties. So how is it that one political party, granted is the majority, has to decided on behalf of government? One could be mistaken, but one thought there was a separation of/between political party(ies) from/and government!

      andile.ngcobo - 2012-12-10 13:48

      Democracy For Dummies: Political parties receive a mandate from the public through elections, political parties the make policies based on the mandate, political parties form a government to implement policy. Get it?

      hengu.willemse - 2012-12-10 17:14

      @andile.ngcobo ironic, just last week police minister nathi mthethwa walked out of a meeting with farmers because they accused the anc instead of the government of not protecting their property during the latest unrest in the Western Cape, was he wrong? You should send him your excerpt of "Democracy for Dummies" then.

  • fussed.anderson - 2012-12-10 12:28

    "Mangaung to decide Telkom's fate" With out the anc, you say telkom will close down????????

  • george.larkins.14 - 2012-12-10 12:34

    The Goverment is the ANC.Just shows you how everything they get involved in, turns into chaos.If corruption is your only goal,nothing will survive on the longterm.

  • gary.desousa.5 - 2012-12-10 12:55

    Gov has a 39% stake, howcome this is even been discussed at an anc ralley

  • ngoako.mathekga - 2012-12-10 12:59

    This is what I will never understand, ANC deciding on state Assets at Mangaung kind of gatherings without proper and in-depth analysis is danger for this country. Leave management of these parastatals to CEO to manage and compete with their peers out there without intervening. Ministers(government) must not give CEOs strategies instead of giving them targets.

      andile.ngcobo - 2012-12-10 13:54

      "In Mangaung, we will take policy decisions that will guide me on how I should be running the department and the sector in general. But it doesn’t mean that Telkom will not be working. The company is hard at work," she told the newspaper." She did say anything about strategy for Telkom which I agree should be left to management. The ANC will decide on POLICY, that is their job.

  • freddie.jones.58367 - 2012-12-10 13:23

    ..........and just last week, didn't we have a Minister walk out of a meeting because she was there as Minister and was asked to speak as a member of the cANCer?

  • Joe - 2012-12-11 09:56

    @Democracy For Dummies post: Well the ANC calls it "state capitalism" - Which is a cute way of saying communism. So you know Democracy is just convenient for the ANC to get elected. Rest of the time it's all about the cadres.

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