September stays, says Telkom

By Candice Jones for Telkom
Johannesburg, 31 Mar 2009

Telkom has slammed speculation that Reuben September is on his way out as the company CEO, saying he has been reappointed as group CEO.

The telecoms giant says, as part of the management manoeuvring aspect of its capability management strategy, September has essentially been reappointed as the company's group head.

In a statement, it explained: “Reuben September has been appointed as the group CEO by the Telkom board and is fully mandated to execute on company strategy.”

The management shuffle was announced to staff and discussed with unions over the last few days. The Communications Workers Union (CWU) lashed out, saying September appointed himself as group head.

However, Telkom explained in a statement that a board appointment cannot constitute a “self appointment” and said the CWU's allegations were “grossly misleading”.

Telkom has been in the media spotlight over the last few weeks, following the suspension of one senior executive and the sacking of another. In the same breath, the company reappointed ex-marketing and sales head, Nombulelo “Pinky” Moholi, now as MD of the Telkom SA business unit.

No mystery

The appointment of Moholi has sparked speculation both inside and outside Telkom that she could be placed into the business as a possible replacement for September. Moholi was once tipped as a possible leader for the telecoms giant, but left under unexplained circumstances in 2005. Her resignation was, at the time, thought to be linked to a breakdown of relations between her and September.

Organisational restructuring, therefore, is not only in the company's best interest, but also in the best interests of all employees of Telkom.
Telkom statement

A former senior Telkom employee noted to ITWeb that Moholi's reappointment could spell the end of the road for September. Many in the industry have also noted that September's reputation has taken a beating over the last year.

There have also been unconfirmed rumours that another industry veteran would take his place.

However, Telkom has hit back, saying: “With regard to speculation in some segments of the media that Moholi's appointment could result in the latter rivalling September for his group CEO position, this is certainly devoid of truth and accuracy.”

The statement goes on to say September was instrumental in the appointment of Moholi, which it says negates any question of September's position at the company. “With September being pivotal in the process that culminated in Moholi's appointment, how certain media could even dabble in such speculation defies logic and common sense.”

Competition capable

September and his chief of strategy, Naas Fourie, have been working towards taking Telkom from a clunky giant to a streamlined telecoms business. Its capability management strategy has been noted by both executives as its real chance at competition.

Industry watchers also say the restructuring will be the company's saving grace. However, the capability management project has been met by wide criticism. The unions have done everything they can to block the process, concerned for the welfare of members employed at the company.

Telkom is clearly tiring of the speculation, criticising the media and the unions for building hype. The company's statement knocked the union concerns, saying: “Organisational restructuring, therefore, is not only in the company's best interest, but also in the best interests of all employees of Telkom.”

From there the company defended its management decisions over the last few weeks. “It also merits re-iteration that pivotal to the delivery on Telkom's new strategy and vision is strong and experienced leadership. We believe Telkom's current exco provides the company with the necessary experience and expertise to lead the company into a new era.”

At the same time, Telkom notes it has done all it can to maintain relationships and open discussions with the unions. “Telkom places a high premium on its relationship with organised labour and consistently consults with this constituency in all important decision-making. The company will continue to do so in the best interests of all our employees.”