Was Telkom’s CEO sacked because of corruption?
Recent media reports have bantered around a variety of reasons for the CEO’s abdication, ranging from suggestions that Molotsane
resigned to pursue other business interests to him bumping heads with the Department of Communications.
The SENS report, released late on Thursday, said that Molotsane resigned from Telkom. This was taken as the ‘accepted’ reason for Molotsane’s departure until Duncan McLeod
, a Financial Mail IT journalist, suggested in his blog
that the Telkom CEO was in fact sacked.
The Weekender’s Lesley Stones also suggested in her article
that Molotsane was shown the door once again contradicting the official reports pointing to a resignation. Stones further highlighted tensions between Molotsane and some of his senior managers, Government and even the president.
The ex-Telkom CEO’s lack of vision and shareholder discontent were also given as possible reasons for his departure.
Corruption
The notion of corruption was tabled in a Business Times article
, suggesting that “he [Molotsane] was beginning to feel alone and frustrated in his bid to clean up inherent corruption within the group”.
According to this article “his business associates say Molotsane was regularly pressured from powerful political quarters to influence decisions concerning the awarding of contracts. His resistance cost him key political support.”
Trade union Solidarity
has requested that allegations about corruption be cleared up as soon as possible through an independent investigation.
“Allegations of corruption surfaced at the resignation of the company’s previous chief executive. These allegations can only be allayed by an independent investigation,” Hermann said.
Hermann noted that the allegations of corruption were nothing new at Telkom and added that Solidarity’s attempts to get to the bottom of these claims had to date proven fruitless.
Something even more sinister?
A recent article
by Duncan McLeod stirs up even more questions regarding corruption at Telkom, this time about the fixed line operator possibly overpaying for the 75% stake in Nigerian Multi-Links
.
According to McLeod “two separate sources, both outside Telkom but with close links to the company, allege that it paid $20m more than the owners of Multi-Links were asking for the business. The sources, who don’t want to be named, do not say what might have happened to this money.”
Telkom denied these allegations, stating that: “The asset was evaluated by independent evaluators at $303m. The sellers wanted $290m. Telkom offered $280m, which was accepted.”
If the assertions by the two sources prove to be credible it further justifies Solidarity’s call for a full scale investigation into corruption at Telkom.
Despite great uncertainty regarding Molotsane’s departure at Telkom and widespread speculation as to the reasons behind his sudden move, the incumbent operator remains tight lipped about the issue saying that they are not willing to comment.
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