About
Subscribe

Nzeku's dismissal set to get ugly

Cape Town, 09 Feb 2009

The looming confrontation between Telkom and its fired chief of operations, Motlatsi Nzeku, is expected by well placed sources to become an “ugly” and drawn out affair.

Nzeku, who was not available for comment this morning, has indicated he will oppose his dismissal, announced by Telkom last week in a strongly-worded statement.

Telkom says Nzeku had opposed the company's restructuring to the point where his role had become extremely divisive and counterproductive, and that it had indications his actions had resulted in reputational damage.

Nzeku's dismissal comes close on the heels of Telkom last week denying any high-level management employee would be fired or retrenched. ITWeb published insider speculation that such retrenchments could take place in light of a management restructuring process.

Weekend media reports say Nzeku would challenge his dismissal in court, but this morning reports stated he would first look at doing this through Telkom's internal disciplinary hearings.

X-files

Sources within Telkom say Nzeku was known for compiling dossiers on people and issues that dealt with allegations of corruption, or irregular dealings when issuing tenders.

“He is a business-only type of person and took it as a personal affront when instances of or corruption appeared. One of the first things he did when he was appointed head of four years ago was to fire two senior managers on corruption charges,” a source says.

Another senior source says that, because Nzeku was known for compiling these dossiers and that only he had access to them, it made many in Telkom particularly nervous.

“Nzeku had to have bodyguards appointed for his at one stage because there were threats against him,” another source says.

Sources say Nzeku had been so disgruntled with Telkom's restructuring plans and its inability to tackle issues of corruption that he stopped going to work. Telkom confirmed Nzeku has been “vigorously” opposing the restructuring process.

Not pretty

Telkom chief financial officer Peter Nelson said in a Moneyweb radio interview that Nzeku was supposed to have been leading discussions with regard to Telkom's restructuring, but he was not available. This restructuring would have seen the South African business placed into one division with one head.

Nelson also indicated Nzeku was believed to be the source of leaks to the media and clients, and that he was looking at the possibility of being demoted due to the restructuring.

Over the weekend, ITWeb received calls from several employees at Telkom, non-employees interested in the restructuring process, and some people who preferred to remain anonymous. Many commented that Nzeku's dismissal was the first step in the management restructure process, and all Telkom employees noted that tensions are on the rise at the company.

“One cannot be demoted, it is constructive dismissal, and so this looks like it will get extremely ugly,” a senior Telkom source says.

Related stories:
Telkom fires COO
Telkom cagey on management shuffle

Share