Fin24

New Telkom chair takes on government

2012-11-20 10:28

Johannesburg - New Telkom [JSE:TKG] board chairperson Jabulane Mabuza believes that the government, its shareholder, cannot determine its strategy, Business Day reported on Tuesday.

"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."

This was in stark contrast to the government's plans to impose a new blueprint on the parastatal, according to the newspaper.

The government devised policies that informed Telkom's strategy, Mabuza said.

The government is the JSE-listed company's largest shareholder with 39.8%. The Public Investment Corporation owns a 10.9% stake in Telkom.

Mabuza said cabinet could not impose strategy on a listed company.

"It cannot work that way. Government, as a shareholder, has a forum that it can use to persuade other shareholders," he told Business Day.

Mabuza was appointed on Friday and had to develop strategies that would be sold to shareholders. He believes Telkom can strike a balance between meeting the government's socioeconomic goals and the public sector's needs.

       


 

Comments
  • chriscathy.meistre - 2012-11-20 11:03

    LOL. How long will you last, Mr Mabuza. 6 Months? 12Months? Forget the government. Rather look at Telkom's overpaid non strategic executives

  • zola.cingwane - 2012-11-20 17:50

    Mr Mabuza you re on the right track, however,I believe you will be singing to the choir when it comes to these guys. The issues are clear as a board and its executive you must make the parastatal viable and profitable and the shareholders must get value for their investment. Government however is playing referee and the player if they would want to impose a well decided strategy that you don't know who researched it, implemented it and found it working. I yet to see a profitable ran parastatal, all of them are swell by ineffective board members, incompetent executives and visionless shareholders who only pump in cash to pay their friends and the tender system that benefits their companies. So in the interinm you must pray that they don't pass a motion of no confidence against you and release all executives who will be appointed by your board.

  • chrisfourielipman - 2012-11-22 06:53

    I got tired of wasting my money and waiting for Telkom to sort my ADSL problems out. Cannot see anything changing in the next ten years: http://www.facebook.com/groups/telkomadsl/

  • AfricanBlueSpaceChrist - 2012-11-25 08:50

    Corporate Gravy Train, riddled with corruption, fraud and backhanders!!!

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