MTN boss resigns

Johannesburg, 13 Nov 2006

Maanda Manyatshe, MD of Africa's biggest cellphone company MTN, resigned this morning.

The resignation comes amid allegations of tender mismanagement while he was CEO of the SA Post Office (SAPO), a position he held before moving to MTN two years ago.

"I am cognisant of the possible negative impact the allegations related to my tenure at the SAPO may have on a listed company such as MTN," he says in a company statement.

"I have, therefore, decided to resign as MD of MTN SA to protect and uphold MTN's reputation and image - this will also afford me the opportunity to focus on and consider the legal matter in my private capacity."

Manyatshe recently denied allegations that he flouted SAPO tender processes and ignored board decisions when he appointed Vision Design House in 2003 to refurbish post offices nationwide.

Standing aside

"This just highlights the folly of [large companies] chasing after the names of people just because they've established themselves as CEOs elsewhere - especially among black CEOs," says one analyst, speaking anonymously.

"Instead of grooming people for a leadership position, they go after superstars - and this is the kind of consequence."

Another telecoms analyst, who also did not want to be named, sees little immediate impact on MTN's managerial structure. "The management team is strong enough in its own right.

"From an ethical perspective, it is good for him to stand aside until his name is cleared; it will be better for MTN."

If it emerges that Manyatshe is guilty of corruption, then MTN's credibility will be similarly unaffected, he adds, since action has already been taken.

Acting MD

Manyatshe joined MTN in November 2004. There is no word on where he will go next.

The cellular giant's group president and CEO, Phuthuma Nhleko, adds in the statement: "I support and respect Maanda's decision to act in the interests of the company - he joined MTN during a very challenging period and his management of the operation has been exemplary."

Brian Gouldie, MTN SA's executive of the consumer business unit, has been appointed as acting MD of MTN SA.