Telkom loses another executive

By Damaria Senne for Telkom
Johannesburg, 08 Jun 2007

Fears and speculation about a senior management purge at Telkom have re-emerged, as the group has lost another high-ranking executive.

Steven Hayward, managing executive of retail marketing, resigned from Telkom with effect from 1 June. However, the fixed-line operator has tried to keep his resignation quiet, and did not make an announcement as it normally does with the appointment or loss of executives at senior level.

This brings the total to six high-level resignations, starting with the sudden departure of former CEO Papi Molotsane, two months ago.

Telkom also refused to provide input over the perception that it was haemorrhaging executives from the Molotsane era.

Hayward was with Telkom for 12 years and was appointed as managing executive of retail in 2005. Previously, he served as managing executive of business and key markets.

Erna Korff, an executive who previously reported to Hayward, has been appointed as acting-managing executive of retail marketing.

Flush-out fears

A Telkom spokesman confirmed Hayward's resignation, but refused to be drawn on Telkom's recent loss of senior staff.

Following Molotsane's surprise resignation in April, sources within Telkom said they feared a purge of executives who pegged their careers on his. "We have to wait and see if this is the beginning of a purge or if it was just him," an employee said.

Soon after, Wally Beelders, chief of sales and marketing, and CTO Thami Msimango left Telkom to join Vodacom ISP, a new Internet company set up by Vodacom. Former non-executive director Lazarus Zim also left, citing his involvement with the Afripalm and Mvela Resources empowerment transaction as the reason.

Other executives moved into positions at various partner companies, with Mandla Ncqobo, chief of corporate affairs, leaving to head up new subsidiary Telkom Media, and Justin Ramayia, an executive in Telkom SA's broadband office, moving to head majority-held Nigerian telecoms operator, Multi-links.

Clean sweep?

World Wide Worx MD Arthur Goldstuck says it is possible that a new broom is sweeping clean Telkom. "It's inevitable that when there is change in top management, there would be a loss of senior personnel. When Papi took over there were some changes too."

However, Goldstuck says it is more likely that Telkom executives are simply leaving to take advantage of new opportunities presented by industry developments.

"We believe there is a major realignment in the Internet space, caused by Vodacom ISP throwing huge resources to set up its business. The aggression of iBurst's growth is also contributing to significant changes in the Internet landscape. So the head hunters are out looking for talent."

As for Telkom's silence regarding new appointments, Goldstuck says the company appears to have changed its focus, neglecting "the touchy-feely" issues such as its image and the way it interacts with the customers.

Telkom seems caught up in roll-out of products and services, upgrading infrastructure and preparing for competition on a product level, he says.