SAA snaps up Telkom exec

Johannesburg, 26 Oct 2007

South African Airways (SAA) has appointed former Telkom CFO Kaushik Patel as its new chief financial officer. Patel will assume his executive duties at the national carrier in January.

"His appointment comes at a crucial time for the airline, which is in the midst of a deep and fundamental restructuring exercise. I am confident that Patel will play a critical role in ensuring that we succeed in our task of turning SAA into a profitable entity," says SAA CEO Khaya Ngqula.

Patel will replace Gareth Griffiths, who resigned in June. Clive Else has been acting in the position since then.

"I have always thrived on new challenges and I am looking forward to joining SAA at such an important time in the airline's history," says Patel.

According to Ngqula, apart from Patel's expertise in financial matters, he is also well versed in the key financial issues of a state-owned enterprise, including the requirements of the Public Finance Management Act and government relations. "He has also played a pivotal role in the turnaround of Telkom."

Trading places

Patel resigned from Telkom on Monday, amid reports that the fixed-line giant was under investigation by the Financial Services Board (FSB) for insider trading.

FSB executive director of the directorate of market abuse Gerhard van Deventer confirmed the organisation was looking into trades running up to Telkom's 3 September notification that it was in talks with Vodafone and MTN.

However, Telkom is adamant Patel's resignation and investigations are in no way linked. Lulu Letlape, the telecommunication utility's group executive of corporate communications, explains: "The timing is unfortunate; however, I can say there is no link. Patel has been consulting with us on his departure since before the investigation began."

Patel says: "I'm leaving for personal reasons, not because of some investigation. I can guarantee that I have nothing to do with any insider trading that the FSB may be looking into."

Telkom yesterday announced a revision of its management structure and appointed Deon Fredericks as acting chief of finance.