Mobile operator Cell C has dismissed a story in yesterday`s Business Report, which claims that chief corporate and strategy officer, S`bu Mngadi, has resigned from the company, although the company admits that managing director Vince Raseroka has quit.
Happy Zondi, Cell C`s PR and media relations manager, says Raseroka has resigned from Cell C with effect from 1 April 2005, in order to work fulltime in his packaging company.
"The company appreciates his contribution to the business and wishes him well in his future endeavours. However, S`bu Mngadi has not resigned from Cell C," she says.
According to yesterday`s report, the reason given for the resignations was because of unhappiness over mismanagement issues and problems with majority shareholder Saudi Oger.
Saudi Oger has a 60% shareholding in Cell C, and it was claimed that Saudi Oger representatives kept changing the business plan and these decisions could not be questioned, as there was no independent non-executive on the board.
The other 40% is held by black investors through a holding company called CellSaf and it was indicated that the relationship between the two shareholders was sometimes fractious.
"Cell C's business plan is developed collectively by the executive committee and approved by the board. As the local telecommunications market continues to evolve, so does the business plan to reflect the changes in the competitive and operating environments," says Zondi.
"The relationship between shareholders Saudi Oger and CellSaf is governed by the shareholders` agreement. As a result, CellSaf is fully represented on all boards and all committees, and decisions get implemented with their approval."
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