SITA purge continues

Johannesburg, 06 Nov 2007

The State IT Agency (SITA) continues to lose executives, with the latest announcement revealing its CFO will depart at the end of the year.

An 18-month veteran of the agency, Mfanyana Salanje is the fourth person from the five-person executive management team to leave since the beginning of the year.

First CEO Mavuso Msimang left to take up the role of director-general at the Department of Home Affairs. This was followed by the departure of chief of strategic services Jonas Bogoshi to head up GijimaAst. Last month, business operations chief Noedine Isaacs-Mpulo left to take the top spot at Lefatshe Technologies.

Now Salanje is leaving to take up a post at "a leading empowered financial services company". SITA has not disclosed the name of the company.

Fatima Habib is the only remaining member of the executive committee. She is SITA's chief of shared services and has been with the business for 18 months.

New broom

Several industry players say Salanje's departure is no surprise. One executive, who asked not to be named, notes this type of play is common for a new CEO.

"When a new person takes over, they want a figures man - or woman - that they can work closely with and trust. I'm not suggesting Salanje is not trustworthy; rather that the relationship is very personal," he explains.

Another player agrees it is likely a case of a new broom sweeps clean, but adds it is common for people in government to be poached by industry.

"This is especially true when it is a person of colour. Organisations like SITA facilitate access to many people in government. And the relationships that are built are extremely valuable to business. Given the uncertainty surrounding SITA, can you blame him for taking up another offer?"

The continuing exits are a concern for those players that receive a material share of their revenue from the public sector.

"As with any company, it is very concerning when a lot of key people leave. Hopefully SITA can right itself in the short time required to avoid damage," says one observer.

Hanger on

Meanwhile, SITA says Peter Pedlar - who held the top spot in an acting position while a permanent CEO was sought - has agreed to stay with organisation.

According to a statement released yesterday, Pedlar will take on a newly-created position of chief of regulatory affairs and procurement. In this role, Pedlar assumes overall responsibility for SITA's procurement, risk management, internal audit, company secretariat and legal services functions.

Those close to the agency have expressed surprise at the move.

"We believed Pedlar would return to his own business. Besides it's not easy to hold the top spot and then step down and take instructions from someone else. However, this will be good for SITA - it brings a degree of continuity which is desperately needed at the moment," says one observer.

Progress made

At a press conference announcing his appointment, incoming CEO Llewellyn Jones said he was concerned about the exits and would do "everything in his power" to fill its vacant positions.

So far, he has approved the promotion of Moses Mtimunye to chief of strategic services. The agency says recruitment processes are under way to fill the holes left by Isaacs-Mpulo and Salanje.

Meanwhile, Jones says he will act in the role of chief of business operations until a suitable candidate is found.

For now, players say they are willing to give Jones an opportunity to prove his worth in the position. However, they have urged the agency to move fast to fill the HR gaps as these could impact on SITA's ability to deliver.