Telkom appoints new chairman

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Telkom (TKG) announced on Friday that Jabulane JA Mabuza has been appointed chairman of the fixed line telephone operator.

His appointment is with immediate effect.

No other details were provided. However‚ the telecoms group has been moving fast to strengthen its board with the appointment earlier today of Leslie Maasdorp as a non-executive director. His appointment brings the number of board members to nine following the appointment of Mabuza and Kholeka Mzondeki to the board earlier this week.

Mabuza replaces Lazarus Zim who resigned last month before the end of his term. The group has also started a process to find a new CEO following the resignation of Nombulelo Moholi.

Telkom was left without six board members after four were voted out at the annual general meeting last month while one resigned about two weeks after being appointed.

Telkom is strengthening its board ahead of the expected turnaround strategy that the government is working on. The Public Investment Corporation (PIC) had previously said that the government was critical to stabilise the entity at the executive and board levels as it had been losing value over an extended period of time. “It is further important to turn the entity around as soon as possible‚ and we believe the starting point is sorting out governance issues‚” it said.

The company’s share price has been declining over the past few months blamed on‚ among other things‚ the uncertainties regarding the company’s future.

Telkom said headline earnings per share for the six months to September would drop by between 78% and 83% from last year. Basic earnings per share from continuing operations are expected to be 62% and 67% lower than the comparative period. - I-Net Bridge

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