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Leadership woes stalk Cisco SA

Johannesburg, 08 Feb 2007

giant Cisco Systems will neither confirm nor deny its latest country manager was forced to resign, the latest in a string of departures from the position in the past few years.

Clive Fynn, the company's local GM until Friday, would also not be drawn on his reported resignation, nor on his future plans, declaring the matter "closed". From the UK, spokesman David Cook said: "It's our long-standing not to comment publicly on personnel issues relating to individual employees."

Fynn's departure, after a year in the position, was revealed on Monday when news reports indicated the company would restructure its local operations and spin off two new entities that would each be 25% black-owned. The company maintains Fynn left to pursue other opportunities and as a result of the new management.

Last August, it was revealed that Cisco's parent company had appointed Cliffe Dekker to conduct an investigation into alleged financial irregularities at the local operation.

Succession missteps

<B>Time line</B>

02/2007 - ?: Regional director Steve Midgley stands in
02/2006 - 02/2007: Clive Fynn
06/2005 - 01/2006: Cisco regional VP Mark de Simone stands in
06/2004 - 05/2005: Mokati Ramphele
08/2001 - 06/2004: Thorsten Freitag

Fynn's departure is the latest in a series of succession missteps at the networking giant's local operations. He replaced Mokati Ramphele, who spent less than a year in the position. Cisco said at the time Ramphele's appointment illustrated "the group's commitment to operational leadership and skills transfer for black economic empowerment".

In 2005, ITWeb could not establish the reason for Ramphele's sudden departure, which happened around the same time the company's channel director for sub-Saharan Africa, George Atrash, also left.

Ramphele was reported to not be a fit with Cisco's corporate culture and to have overstepped management handed down from the US and European headquarters. He left his previous position as COO of arivia.kom under a cloud after reportedly being frogmarched off the premises.

At the time of Ramphele's departure from Cisco, a locally-based spokesman said the move was prompted by a management style difference. However, he refused to be drawn on further details, but said the "separation" was amicable. "Cisco does not usually comment on personal issues of this nature."

Mark de Simone, Cisco VP for the Middle East and Africa, took over the running of the sub-Saharan operations, while Ramphele's replacement was sought.

Committed to SA

Ramphele was handed the reigns after Thorsten Freitag moved on following a four-year stint at the company. At the time, Freitag was to assist Ramphele during the transition period and was expected to remain with the company.

Freitag moved into the position of sub-Saharan Africa MD at Cisco Systems SA in August 2001. He was appointed to take full responsibility for Cisco's local office and its expansion programme into sub-Saharan Africa.

"Cisco has identified the African continent as a potential growth market, and with the South African telecommunications market deregulating in 2002, it will present unprecedented growth opportunities for Cisco," said Freitag. He had been with Cisco since 1995 and moved over from its Korean subsidiary, after growing that office's revenue almost threefold.

Freitag subsequently reappeared as chairman of German software firm Kensense's SA operation. He is reported to have said in December 2005 he had the choice of moving to Cisco's London office, an option he declined in order to remain in SA.

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