Telkom, former boss mum on exit settlement
Negotiations for a departure settlement for Telkom’s former chief executive officer, Papi Molotsane, have been concluded following speculations that he was frustrated and was pushed to leave.
Lawyers acting for Molotsane began negotiations with the parastatal’s executive board within weeks of his shock resignation on April 5 this year.
On Thursday Telkom declined to disclose how much Molotsane had been paid out.
Its spokesperson, Lulu Letlape, said: “The information that the company is required to disclose in respect of the settlement for the former chief executive will be done through the annual report, as is required. In these circumstances, any information outside of these requirements is confidential.”
Business Times established in April that Molotsane’s lawyers sent Telkom’s board a letter about the circumstances of his “resignation” and questioned whether he resigned of his own accord.
His attorneys, Rosin Wright Rosengarten, this week also confirmed that a settlement agreement had been reached.
Mark Rosin, a partner in the law firm, said: “The terms of the settlement are confidential and I am not in a position to reveal or discuss them at all.”
Asked whether the settlement was in the region of Molotsane’s R2.2-million annual salary, Rosin said: “I can tell you that your information on the terms is speculative and Papi does not wish to engage regarding the other questions posed at this time.”
Telkom’s financial reports show that Molotsane earned R9.5-million between September 2005 and March 2007, during his 18-month tenure at the parastatal.
The latest report shows that he pocketed a total of R3.9-million in the year ending March 31 2007. This package included a salary of R2.2-million and fringe and other benefits totalling R1.6-million.
Appointed in August 2005, Molotsane took up the three-year post the following month.
With his contract expected to end on August 31 2008, the annual report states that should the service of any of Telkom’s executive directors be terminated early, the human resources review and remuneration committee will “tailor” a compensation package, with a broad aim of avoiding rewarding poor performance.
In January, Business Times reported that he had come under fire from senior managers and investors about the way he ran the telecommunications giant. He was accused of sitting on a report by international business consultants McKinsey, which was believed to be “ critical” of Telkom’s management structures and technical capacity.
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