Telkom keeps exec exits quiet

By Kimberly Guest for Telkom
Johannesburg, 05 Nov 2007

Fixed-line giant Telkom has bid farewell to two more managing executives.

Joshua Motjuwadi (53), managing executive of information system services, and Johan Mar'e (52), managing executive of information systems development, left the company at the end of October, Telkom has confirmed.

According to Telkom`s Web site, Motjuwadi was responsible for directing, managing and controlling information system services within Telkom. Mar'e was responsible for the management and implementation of Telkom`s information systems.

The exits follow a slew of high-level departures from the JSE- and New York Stock Exchange-listed company.

At least 11 senior people have left since the beginning of the year. However, two of these, Steven Hayward and Thami Msimango, have since returned.

Under wraps

A source close to the organisation claims the departure of Motjuwadi and Mar'e was deliberately kept quiet to avoid further concern at Telkom`s AGM last month.

However, Telkom group executive for corporate communication Lulu Letlape denies this is the case.

"Resignations are a process and not an event. At the time of the AGM, the process of the resignation of our two senior officials was still under way," she says.

An analyst, who asked not to be named, points out that Telkom was not required to announce these departures.

"These people were not on the board and not at the 'C` level. Telkom could have issued a statement if they wanted to, but they were certainly not required to do so. Given the market concern around high-level departures at the company, it`s not surprising that they chose not to."

He adds that the departure of people from the organisation should not come as a surprise to the company.

"Telkom is facing uncertainty at several levels: it does not have a stable management history; does not have a fully instated CEO; and is in talks with MTN to potentially sell some or all of its operations. At the same time, the telecoms industry is in a state of flux and there are many opportunities available for people with high levels of experience. At the end of the day, who can blame these people for choosing something more certain?" he asks.

The analyst`s comments echo those of Telkom chairman Shirley Lue Arnold at its AGM last month.

"The changes you are seeing [to our workforce] are representative of the changes in the market. Unfortunately, we are often the training ground for [the staffing requirements of] other companies in this sector. Luckily, we are fortunate in that many people are incredibly committed to the company," she said.