Fin24

PIC: Stability needed at Telkom

2012-11-05 20:12

Johannesburg - Stability at board and management levels at Telkom [JSE:TKG] was needed to turn the parastatal around as soon as possible, the Public Investment Corporation (PIC) said on Monday.

"The PIC has noted the resignation of Telkom's chief executive Nombulelo Moholi with regret as we would have liked to see some stability at the executive level," the company said in a statement.

Moholi handed in her resignation on Monday.

Board director Neo Phakama Dongwana also resigned.

The PIC said Moholi had been around for a short period of time and was faced with various inherited challenges.

Stability was needed as the entity had been losing value over an extended period of time.

"It is further important to turn the entity around as soon as possible and we believe the starting point is sorting out governance issues."

Moholi was appointed chief executive in April last year, after acting head Jeffrey Hedberg decided earlier in 2011 not to renew his contract.

She became the first black woman to head a Johannesburg Stock Exchange-listed telecommunications company in South Africa.

She was previously Telkom's chief sales and marketing officer from 2002 to 2005, before moving on to Nedbank for three years.

In 2009 she returned to Telkom as a managing director.

Comments
  • Deon de Lange - 2012-11-05 22:25

    Another state owned entity - another turnaround required - and no doubt tax funded bail-outs to follow. When will the ANC ever learn?

  • charl.odonovan - 2012-11-05 22:43

    Stability at executive level?! The whole problem is at executive level! How can you have stability in any company when the executives are incapacitated? Same with our municipalities. Same with Eskom.

      jim.binnie.1 - 2012-11-06 00:13

      Say what you mean Charl and do not beat about the bush. The problem is political interference by a government which is totally clueless about how business operates, either at the pure business level or at the so called "para-statal" level. The answer is very simple - government must restrict themselves to trying to run the country?? and leave businesses to run themselves.

  • rinus.groeneveld.7 - 2012-11-06 00:00

    Is this what you call an "expert opinion"? There is obviously no turn-around in sight and we have two options: (a) privatise and save or (b) expect tax-revenue bail-out request. SAA II.

  • zip.reeper - 2012-11-06 05:31

    can telkom somehow be compelled to supply free phones to millions of squatters and rdp leeches? that is what the government seems to expect. that may be why the share price is at R18 while its net asset value is R50.

  • arthur.salvado - 2012-11-06 08:00

    At least Telkom knows how to pay nice bonuses. For as long as the taxpayers are happy with it, bonuses and golden handshakes will flow with gusto. Of course, suspension on full pay and participation on handout of bail money is the number one choice. What a mess !

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