{"id":65144,"date":"2012-11-25T17:14:03","date_gmt":"2012-11-25T15:14:03","guid":{"rendered":"http:\/\/mybroadband.co.za\/news\/?p=65144"},"modified":"2012-11-26T10:45:13","modified_gmt":"2012-11-26T08:45:13","slug":"telkoms-mr-fix-it","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/telecoms\/65144-telkoms-mr-fix-it.html","title":{"rendered":"Telkom’s Mr Fix-It"},"content":{"rendered":"

Jabu Mabuza<\/a> strikes a calm, dignified presence. His sartorial style \u2013colour-matched shirt and handkerchief and trendy hat – doesn\u2019t hurt. There\u2019s a touch of confident swagger, but no arrogance.<\/p>\n

Telkom<\/a>\u2019s fourth chairperson since 2009 knows the enormity of the task ahead of him. He speaks of the \u201ctesticular fortitude\u201d needed to do the job, and he\u2019s heard it all from friends and colleagues.<\/p>\n

As the congratulatory calls came in since his appointment at a board meeting on Friday, so too came the chirps\u2026 \u201cYou must be brave,\u201d they said. Or \u201cstupid\u201d. Or \u201cna\u00efve\u201d. \u201cOr a combination of all three\u201d, he laughs. Mabuza says the feedback he received after his appointment as Business Unity South Africa president was \u201cnot dissimilar\u201d.<\/p>\n

Why take up one of the toughest jobs in South Africa, perhaps rivalled only by Springbok coach?<\/p>\n

Mabuza says he \u201cembraces this opportunity to serve.<\/p>\n

\u201cSouth Africa in its entirety has given me so much. Everything I have and everything I am is from this country\u201d.<\/p>\n

Despite various views to the contrary, especially those emanating from government in recent months, he stresses that \u201cTelkom is set up as a business to serve customers\u201d.<\/p>\n

His first (and probably main) order of business will be to restore the government\u2019s confidence in Telkom\u2019s board. Recent tensions between the Department of Communications<\/a> and Telkom, and the chaos surrounding director appointments are well-documented.<\/p>\n

It wouldn\u2019t be a stretch to think that government and previous Chairman Lazarus Zim<\/a> did not see eye-to-eye. Its also uncertain how (pro-)active Zim has been over the past year.<\/p>\n

On Monday, Mabuza was at pains to stress the differences between government as policy-creator and government as shareholder. In fact, he repeated the distinction half a dozen times.<\/p>\n

He accepts and maintains that government\u2019s role is to set the policy direction for the country. Telkom, through its board and executives, is responsible for developing strategy, which, in turn, informs the company\u2019s business plan and budgets.<\/p>\n

\u201cThe day shareholders give you a strategy, they may as well come run the business.\u201d<\/p>\n

Obviously, Telkom\u2019s strategy needs to align with government policy, he adds.<\/p>\n

Government, as a (39.8% direct) shareholder, is not \u201cany different to the other shareholders. Its role needs to be seen in line with other shareholders\u201d.<\/p>\n

He says he will be \u201ccalling for a meeting between the board and government, as a shareholder\u201d.<\/p>\n

He\u2019ll be meeting the Public Investment Corporation too. And other shareholders.<\/p>\n

\u201cCertain elements of government may think we are 100% owned, but that is not the truth.\u201d<\/p>\n

\"Jabu<\/a>

Jabu Mabuza<\/p><\/div>\n

Mabuza acknowledges that \u201ca lot of value has been lost\u201d because of the negative sentiment surrounding the company. Telkom shares are down more than 45% over the past 12 months, versus an 11% increase in the JSE Top 40 over the same period.<\/p>\n

He understands the need to have the confidence of investors better than most. And Mabuza is very experienced in balancing and pleasing tricky shareholders.<\/p>\n

As CEO of Tsogo Sun<\/a> from 2006 until last year (before the merger with Gold Reef Resorts), he needed to work delicately to get two large shareholders on-side. It wouldn\u2019t have been easy to get buy-in from HCI, run by two former trade unionists, and SABMiller who surely views its investment in Tsogo as a legacy one that\u2019s trivial and completely non-core.<\/p>\n

If he did not believe he has the nous to persuade government that Telkom is attuned to its policy, Mabuza would not have accepted the job.<\/p>\n

He says Minister of Communications Dina Pule<\/a> phoned him and complimented him following his appointment. He informed her that once Telkom was finished reconstituting its board, it would be time to meet. He is hopeful that by January, there are closer to 12 board members. Already, the appointments of Kholeka Mzondeki<\/a> and Leslie Maasdorp<\/a> to take the board compliment to eight, have been well-received.<\/p>\n

\u201cI\u2019m not suggesting this is a walk in the park.\u201d He jokes that he\u2019s just a taxi driver.<\/p>\n

But, \u201cwe cannot afford a Telkom that is not working\u201d.<\/p>\n

Source: Moneyweb<\/a><\/p>\n

Related articles<\/h3>\n

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Alarm bells ringing for Telkom ADSL<\/a><\/strong><\/p>\n

Telkom ADSL speed increase update<\/strong><\/a><\/p>\n

Telkom ADSL growth slows further<\/strong><\/a><\/p>\n

Telkom 40Mbps VDSL trial details<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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