Fin24

Telkom CEO steps down

2012-11-05 07:47

Johannesburg - Telkom [JSE:TKG] advised on Monday that CEO Nombulelo Moholi has notified the company of her intention to step down before the end of her contract period.

Moholi, who was appointed to the position in April last year, has given the board the requisite six months notice in this regard.

The board will embark on a process of finding a replacement CEO once it has filled the current vacancies and there are at least eight directors as required by the Memorandum of Incorporation‚ it said.

The process of filling the vacancies on the board has commenced and announcements will be made in due course.

Telkom also announced the resignation of Neo Phakama Dongwana from the board.

Stung by declining fixed-line usage and an expensive, failed attempt at expansion into Nigeria, Telkom launched a mobile phone unit that some analysts have said lacked strategic logic.

Shares in the company are down nearly 40% so far this year, underperforming a near 20% gain the All-share index and underscoring the lack of investor confidence in the stock whose top shareholder is the South African government.

In June, the government, which owns nearly 40% of Telkom, rejected South Korea's KT Corp offer for a 20% stake in the company.

 

Comments
  • gary.desousa.7 - 2012-11-05 07:57

    State control continues.

      honey.deelishus - 2012-11-05 09:11

      cANCerous mess created by BEE! Now all the capable people are living in the UK and using their talents and experience to create jobs and pass on their skills there! Shame on you Zuma and Co!

      frank.vankaapstad - 2012-11-05 09:45

      Agreed, let's find the best person for the job. Not a white person or a black person or a male or a female, simply the BEST person available. No chance of that happening though with "our" Governments racist policies firmly entrenched.

      charlesbronson.bronson - 2012-11-05 10:14

      Nice Government, You will loose more than 40% if you going on running this country to supporting a useless corrupted shower-head.

      frederik.vanas - 2012-11-05 14:01

      the look on her face says it all......what am I doing here...and what is happening??

      frederik.vanas - 2012-11-05 14:21

      frankvankaapstad, with herd boy calling the shots, small chance of getting the right person.......

  • jacob.zooma.9 - 2012-11-05 07:57

    Finally, some house cleaning happening within SA.

      Andrea - 2012-11-05 09:05

      Hardly, this one will be replaced with the next incompetent AA in line for promotion.

      heibrin.venter - 2012-11-05 11:03

      @Andrea: yep, she's had enough at the Telkom trough, she's moving on to the next *sweeter* one. Enter the next feeder!

      clive.kihn - 2012-11-06 20:21

      The best house cleaning would be for govt to get shot of Telkom altogether and let some real professionals take over.

  • Godfrey Adams - 2012-11-05 08:00

    Stepping down with Golden handshake

  • J.Stephen.Whiteley - 2012-11-05 08:08

    Oh, how convenient for Pinky!

  • erich.goosen - 2012-11-05 08:09

    Judging the poor service rendered by Telkom, one can only hope that more senior staff will leave. It will not change the situation unless the government deviates from its policy and starta to appoint senior staff on merit and not their political affiliation.

      themba.maseko.568 - 2012-11-05 08:41

      I have been with Telkom since 1999 & must confess that although they can do better, they have provided me with good service. My phone was down once with lightning (have since upgraded my plugs to Ellie's products) and my ADSL was also down once due to an upgrade (which they never communicated upfront), but the upgrade line is faster. ADSL is much more reliable than 3G. I sincerely do wish Telkom good luck.

      honey.deelishus - 2012-11-05 09:47

      Themba! I'm not sure which planet you're on but Telkom's service standards are rated extremely low by international standards. You obviously work for them. My service and just about everyone I know, is plagued with dead adsl,dead phone lines etc.

      honey.deelishus - 2012-11-05 09:55

      confirmed - themba is a NEWS24 troll, another of my comments removed because the Commies didn't like it!

  • napolita.kio - 2012-11-05 08:09

    Great story for the boys and girls on the Northern side ;) Let's make it 1000 comments, let's go !

  • filletman.filletman - 2012-11-05 08:18

    I wish that you people would read the news before up on someones track record before posting drivel. If you do, u will realize that , although she is no Koos Bekker, she was one of the better ones there. You would also then have realized that she is most probably resigning as a result of the corrupt minister's interference and political meddling at the recent AGM. With these actions, the minister has effectively placed Telkom on a path to oblivion!

  • george.slade.161 - 2012-11-05 08:22

    Next Deployed overpaid useless Cadre please . How abt Blacky Kumani --he needs a job.

      bharath.bhumi - 2012-11-05 08:47

      Blacky Komani put his OWN house on block to try and keep the business afloat ....and now he has LOST his house. The man has more integrity than most CEOs and most of us for that matter.

      bharath.bhumi - 2012-11-05 08:57

      Here's to entrepreneurs - in their success and their failure! 1time has started a re-imbursement process and our only hope is that all passengers are indeed re-imbursed FULLY.

  • bharath.bhumi - 2012-11-05 08:34

    The world has changed and worldwide companies have changed. People are getting used to the fact that hero worship of top management was unwarranted - the true rulers are the market conditions. Top management has to to merely do their jobs just like everyone else has to do their jobs.Success or failure is driven by the market. Steve Jobs created a market by creating unprecedented products at the time and hence the market. In Telkom's circumstances the CEO is one of 18000 employees. If engineers and technicians exist a network exists, if sales and marketing exists products exist and as long as people in South Africa exist companies like Telkom will exist. Telkom's success will lie in the products it creates for a modern market, the infrastructure it creates to support that new market and the timing it does it with (before the competition). Vodacom and MTN succeeded because they were the first to the market - simple as that. The lives of 18 000 people do not stop just because management is playing musical chairs.

      george.larkins.14 - 2012-11-05 09:38

      Depends how many of the 18000 people deseverves to be there. Or have they been appointed as a result of BEE and AA. Productivity and service delivery are not Telkoms Strenght points.If you take into account that they have the monopoly in fixed line operations,then their results are pathetic.

      bharath.bhumi - 2012-11-05 11:30

      Yeah george, I'm sure Vodacom and MTN DON'T have BEE and AA policies, I guess that's the reason why they succeeded. C'mon EVERY major company in South Africa is required by LAW to have BEE policies. In any case, look around you-where do you think all the whites who own cars,houses and land go to work everyday? Do they take the ferry to Australia??? Get real.Whites have jobs because of employment equity and because of the fact that there are not enough qualified blacks to fill all vacant positions. Even if you look at the top job adverts online and in the papers - companies still pay more, (+R200K more on top of a fair salary) for white employees than non-white employees because they believe that capable whites deserve the premium. South Africa is still employment paradise for whites-so why complain? Would you like MOST jobs to go to whites in South Africa, just because you and the corporate world believe that most whites are more capable than most non-whites? Do you really think that would work in a democratic South Africa where the majority rule??? Minority rule by merit can only be applied if the majority are agreeable.Goodluck trying to convince 45million blacks that your merit should be rewarded above their own interests. Just worry about maintaining your own standard of excellence, you will always have a job in this country.The moment you slack in your integrity or excellence, you will be replaced. This may not apply to blacks in their own country.

      george.larkins.14 - 2012-11-05 11:32

      Not talking about corporate business.They can afford to employ quality people and comply with BEE and AA.The quality people(Whatever the colour)carry this dead wood and still be efficient.With Goverment control entities all the dead wood do not have quality support

      bharath.bhumi - 2012-11-05 11:55

      I made sure I checked this out with my industry sources, Telkom hires out of the same pool of people that any corporate in South Africa hires. You can check yourself with any employment agency out there. Everyone in the corporate world including Telkom pay the same market related salaries (in some instances Telkom has many added benefits) as compared to any other corporate in South Africa. Did you know that Allan Knott-Craig former CEO of Vodacom and current CEO of CellC was a Telkom executive and started off Vodacom as a Telkom employeee, not as his own business but as a Telkom subsidiary? There are literally thousands of engineers of all colours just like him currently employed in Telkom.

      george.larkins.14 - 2012-11-05 12:15

      Then I refer to my previous comment on the 18000 employees.The problem must be somewhere.And I am not relating it to coulor.

      bharath.bhumi - 2012-11-05 12:18

      In effect Vodacom was Telkom's most successfull business to date. They sold off the business and made tons of money. You may argue that it was a mistake. The R10billion flop made in Nigeria was due to a handful of top management employees of Telkom who subsequently left the company. In effect 18000 people have to pay for the mistakes of a handful of non-performers.

  • george.larkins.14 - 2012-11-05 08:40

    And they want to Nationalise the Mining Industry.

  • chrisfourielipman - 2012-11-05 08:48

    Abandoning Ship???? http://www.facebook.com/photo.php?fbid=10151229084354555&set=a.10150393453149555.377826.661029554&type=1&relevant_count=1&ref=nf

  • george.pito - 2012-11-05 09:01

    How mush is she getting. Why do they get these golden handshakes nobody should get a golden handshake other that what the labor law specifies.

  • magomarele - 2012-11-05 09:40

    I think Pinky has done a massive work in Telkom to try and steer the corporation to growth path, however Telkom is facing tough times due to poor historical decisions made before Pinky took over. Government interference and poor strategic decisions made about 5/6 yrs ago are haunting Telkom now and would continue to shape the company's trajectory. Pinky is an intelligent executive and I wish she can go on to join companies with focus and vision like MTN or FNB.

      ngwato.makgata - 2012-11-05 10:08

      I think our CEO's r working very hard 2 improve business 'n economy, de problem is our government, all our parastatal r going 2 b affected , as long as our leaders r still stealing money from de poor.

  • Eterni80 - 2012-11-05 09:56

    owning shares in a government owned enterprise is an oxymoron, especially in SA where our government is so incompetent/corrupt. the ANC were so quick to take over, they never actually realised that there is more to being in charge than just actually being in charge. after 18 years of essentially doing nothing but stealing, the rot has now become apparent.

  • vdwjasper - 2012-11-05 10:12

    Telkom is already broken.

  • dragonfire47 - 2012-11-05 10:32

    now if they would just get rid of that thing at the D.O.C

  • corne.mulder.399 - 2012-11-05 10:41

    On 25 September 2012 she said she is not resigning and that it is just a rumour - well here she goes. Leaving the ship Pinky? So typical! You appoint incompentent people and the poor ones still left in the company needs to battle each day.

  • mattewis.kat - 2012-11-05 13:02

    ...and ESKOM CEO must be brought down!!!

  • clive.kihn - 2012-11-06 20:19

    Did the PIC jump for joy at this news, as they did when Anglo's CEO quit? Probably not, being the hypocrites they are. They quite rightly bemoaned Anglo's (non-)performance under Carroll, but what about Telkom's abysmal record for many years? The PIC owns about 10 percent of Telkom, much of it govt employees' pension money, which seems like very poor stewardship to me. Would you like a chunk of your pension tied up with this joke of a telecommunications company?

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