Africa's largest cellular operator, MTN, has yet to shed any light on when it will announce a successor to Phuthuma Nhleko.
Nhleko yesterday backtracked after announcing a two-month timeframe for the appointment of a new CEO. The market has previously indicated that clarity about who will lead the company is vital sooner, rather than later.
MTN announced Nhleko's resignation in March, indicating he would move on by March next year, but will be available to the board after leaving. He has also agreed to stay on until March, at the latest, to facilitate the handover process, despite his contract expiring in mid-year.
Since Nhleko's appointment to the helm of the company in July 2002, it has grown from turning over R19 billion to boasting revenue of R56 billion in the half-year to March.
Nhleko was appointed in July 2002, after spending nine years at the helm of Worldwide African Group. Nhleko will not be renewing his long-term contract of employment, which ends at the end of June, but has agreed to keep his current role until March next year to facilitate a seamless transition.
However, yesterday Nhleko told ITWeb his last day would be 31 March 2011, and that he had not decided what he would do after moving on. Nhleko says he still has nine months to decide.
Long process
Nhleko says the board, under chairman Cyril Ramaphosa's guidance, is going through the process of finding a successor. He explains that because MTN is a publicly listed company, the board needs to be thorough in its decision-making process.
However, Nhleko's comments contradicted an earlier statement made during the company's results presentation for the half year to June yesterday morning. In response to a question from an analyst, he said MTN would be dealing with the issue “in the next month or two”.
He said during the presentation that MTN was aware that it needed to move forward with the process. “The chairman and the board are dealing with the issue, they are getting to the end of the process,” said Nhleko.
When pushed for clarity as to whether “dealing” with the issue in the “next month or two” meant an announcement would be made shortly, Nhleko backtracked and said he didn't intend to say an appointment would be announced shortly, and that he should not be quoted.
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