Telkom executives fear purge

By Paul Vecchiatto for Telkom
Cape Town, 10 Apr 2007

Telkom senior executives bunkered down on their first day back at work today, following the sudden resignation of CEO Papi Molotsane last week.

The news was unexpected for many senior Telkom executives, who claim to have had an inkling that something was up, but say they are still shocked by Thursday's announcement.

"We knew there was a boardroom-level tussle going on; however, many thought Papi would weather the storm and come out either severely chastised, or with reduced responsibility. We never thought it would go this far," one Telkom insider says.

Another senior Telkom employee says there is real fear that those who have pegged their careers to Molotsane's may also find themselves getting the axe.

"We have to wait and see if this is a beginning of a purge, or if it was just him," the employee says.

Molotsane's arrival at Telkom, in September 2005, was marked by the suspension and resignation of three top executives - sales and marketing executive Pinki Moholi, investor relations executive Belinda Williams, and human resources executive Oupa Magashule. The event is still fresh in the minds of many Telkom employees.

Telkom is in a closed period, ahead of the release of its year-end results, and will make no further comment on the resignation apart from last week's Stock Exchange News Service announcement.

September good for Telkom

A former senior Telkom executive says COO Reuben September's temporary appointment as CEO is good for the group, and he will more than likely be appointed full-time to the position.

"Reuben was tasked by the board to oversee almost all of Telkom's big projects, such as the restructuring into wholesale and retail divisions, the customer-centric strategy and the installation of the new-generation network," he says.

The former executive says there could be many reasons for Molotsane's sudden departure, adding there had been a lot of talk over the past six months from internal and external sources as to whether he was up to the job.

"There have been a number of things, and whether it was the signing of the contract for the Eassy [East African Submarine Cable System] that was the last straw is not really known," he says.

The former executive says whoever takes over Telkom's reins will have to balance the commercial imperatives of a listed company, while trying to ensure government's policy is met.

"Often these issues will be in conflict with one another. How they are managed, and if the right channels of communications are opened, is the key to resolving them."