Fin24

Telkom needs 'worthy successor'

2012-11-05 11:51

Johannesburg - Telkom [JSE:TKG] needs to find a "worthy successor" to chief executive Nombulelo "Pinky" Moholi, trade union Solidarity said on Monday.

"Moholi is one of several Telkom CEOs who have resigned over the past year and her resignation will contribute to further instability in the company," spokesperson Marius Croucamp said in a statement.

He said the company had been plagued by problems, such as a R449m Competition Tribunal fine for "bullying" potential competitors, a failed bid by Korea Telecoms to buy a 20% stake in the parastatal, and weak financial prospects.

"Solidarity is concerned about who will take over the reins from Moholi, as her successor will have to re-establish stability in the company."

The parastatal announced Moholi's resignation on Monday.

"Moholi has notified the company of her intention to step down before the end of her contract period," it said in a statement.

"She has given the board the requisite six months' notice in this regard."

The company's board director Neo Phakama Dongwana also resigned.

Once the "current vacancies" on the board were filled, it would start looking for a new chief executive.

Website BDlive reported that at Telkom's annual general meeting (AGM) in October, Communications Minister Dina Pule managed to vote off four board members.

The AGM was last chaired by Lazarus Zim after he announced his resignation as Telkom chairperson in September.

Moholi previously rejected speculation that she intended resigning after Zim left.

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 up 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.

At 11:57am Telkom shares were down 2.64% to R17.72 on the JSE.


Comments
  • george.larkins.14 - 2012-11-05 12:10

    Not just worthy,The candidate must be properly qualified and with relevant experience.If not you will sit with the same problem in a couple of months time.

      mark.singh.9889 - 2012-11-05 12:22

      we know it doesnt really work like that. the new encumbent must be a comrade as well

      Willie - 2012-11-05 12:23

      Solution privatize

      arthur.hugh - 2012-11-05 12:38

      Nah, I'm sure any worm will do.

  • magomarele - 2012-11-05 12:19

    Telkom is plagued by huge historical mistakes which have nothing to do with Pinky. She found the problems there and they're huge. People who authorised purchase of Multi links for billions of rands and those who authorised Telkom's bullying of competitors leading to competition tribunal's fine should take accountability of Telkom's meltdown. It's going to take years before Telkom gets out of the woods. They'd need a good strategy from now onwards and government is not helping matters with their interferences.

      frederik.vanas - 2012-11-05 12:34

      Mate you know very little about CEO'S by the look of things.......they need to be highly qualified and very well experienced individuals. There is a very small pool of high calibre CEO'S in this country. She is unfortunately not one of them........

  • erich.goosen - 2012-11-05 12:49

    A 'worthy successor' in the ranks of the ANC - this will be a very, very scarce commodity.

  • steve.ritchie.739 - 2012-11-05 12:51

    Here's a plan for Telkom. Keep your prepaid services, internet services, call-boxes and outsource the rest.

  • bharath.bhumi - 2012-11-05 13:23

    Qualification will not change market conditions. Telkom has to create new markets where none exist currently. The only qualified person on the planet that is capable of creating new markets is dead. They can resurrect Steve Jobs to run Telkom if they wish or they can create products of the future. Like becoming the first true market leader of 4G/LTE, IP and smart networks to the business and home. In so doing becoming the de facto partner to run cable content even for current satellite providers like DSTV whose satellite technology limits content provision and quality assurance. Running and maintaining base station cables cheaper and more efficiently than MTN and Vodacom thus becoming the outright partner to the competition. Business is business - a competitor is firstly defined as a customer and client. The hardware for cloud technology exists but the market is not mature enough to reach profitability - companies have to work with Google and other businesses to bring bundled products to the market - a market that "does not exist" yet. Don’t re-invent the wheel – just put some beautifully machined mags on it. Create desire not base affordability. Telecommunications like technology is about enjoyment and progress, not about coupons and handouts.

      heidi.lundie - 2012-11-05 22:21

      The only reason that Telkom has lost market shares is bad management and the resulting bad services. All the retrenchments to get rid of capable white technician to replace them with black people that does not get the training they needs before a product get introduced, resulted in a company that is not trusted anymore, and who can blame the people for not trusting Telkom? Telkom needs a CEO with vision and shavvy, not a affirmative action person that gets the job because they are NOT white and family of one of the ministers.

  • mikel.kiparski - 2012-11-05 13:25

    telkom missed the boat

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