The future looks bleak for state signal distributor Sentech, as the board and management of the state-owned enterprise have admitted the company continues to operate under “extremely challenging circumstances”.
“Uncertainty about the company's mandate and the source and quantum of future funding has indeed impacted on confidence and morale,” says Sentech spokesperson Hulisani Rasivhaga.
This comes as a source close to the company reveals the situation is worse than previously reported.
The source claims Sentech currently has a 25% staff shortage, with many positions filled on an “acting” basis - for up to 24 months - with employees not allowed to apply for these positions on a full-time basis.
“Sentech is the Hollywood of the telco industry - there are so many 'actors'. Staff morale is at an unbelievable low - everyone is on the Internet every day looking for a job. People have lost faith that anything will ever come right,” adds the source.
Furthermore, it is alleged that key skills are being lost to resignations and are not being replaced.
No top structure
“The top structure of the company is missing in action. The following executives and GMs were retrenched, fired or resigned, and are not being replaced: sales and marketing, finance, technology, international business, IT, telecoms and projects,” says the source.
While Sentech would not address the specific allegations, it has not denied them either. For the past few years, the company has faced various difficulties, including a staff exodus, confounded by a perpetual shortage of funds.
“The board and senior management are, however, fully committed to revitalising the company and are engaged with the Department of Communications and National Treasury in an attempt to develop a clear mandate and positioning in the wireless arena, specifically in regard to providing services to areas that are not attractive for the commercial operators,” says Rasivhaga.
She adds: “We have created a flatter structure in light of our funding position, as well as to realise requisite efficiencies. We will have an appropriate structure once the funding and strategic issues have been resolved.”
Rasivhaga explains that, due to the general skills shortage, recruitment in the ICT industry has “always been challenging”.
In Sentech's recently-released annual report, chairman Colin Hickling also alludes to the problems faced by the company. “Frankly, our funding challenge is jeopardising our status as a going concern and affecting our attractiveness as an employer.”
The figures
While government has mandated Sentech to complete several key projects, it has fought a protracted battle to get adequate funding approved by the Department of Communications and National Treasury.
In regard to the switchover to digital terrestrial TV, Sentech has applied for total funding of R955 million, but was allocated only R650 million by treasury. The company says it will continue to motivate for the remaining R300 million.
It also says the R917 million required for dual illumination (the co-existence of analogue and digital broadcast signals) costs has not been resolved.
In terms of a nationwide broadband network that Sentech is mandated to roll out, the company says its original budget was R3.1 billion, but treasury provided R500 million for the current year, with no firm commitment to provide the rest.
Sentech has also applied for R140 million for its participation in the undersea cable project, but was allocated R21 million instead.
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