Three Sentech board members have resigned since January as the state-owned enterprise prepares to introduce major changes.
The resignations come as the signal distributor faces challenges and prepares to implement changes, following a damning task team report on the state of the company. The report called for the urgent turnaround of Sentech, saying it was in a “weak” and “financially thorny position”.
Yvonne Muthien, Deenadayalen Konar and Tau Mashigo have resigned from the board. The most recent resignation was that of Mashigo, who left the board on 5 February. This was a day after communications minister Siphiwe Nyanda released the findings of a task team report into the performance of Sentech. Muthien, who served as a non-executive director, resigned on 28 January, with Konar quitting the board only a day later.
Sentech head of corporate communications Polly Modiko confirmed the resignations, saying Muthien and Konar left to pursue other business interests.
Remaining board members include chairperson Colin Hickling, Thabo Leeuw, Beverley Ngwenya, Nandipha Sihlali and Nonkumbulo Tshombe.
While a turnaround for the state-owned enterprise is on the cards, Sentech's woes continue to grow. The company has been in financial dire straits for several years, battling to source funding for some of its major projects, which include SA's digital migration and its role as a backup service provider to Telkom for the Fifa 2010 Soccer World Cup.
CEO vacancy
While Nyanda stated that no “explicit recommendations” on the firing of board members had been made in the report, it is expected that management changes would be made. The report did recommend that leadership and governance in the company need to be strengthened.
The CEO seat will also be vacant later this year, as the current CEO Sebiletso Mokone-Matabane vacates her post. She has been CEO since 2001.
Modiko confirmed that Mokone-Matabane's term ends on 30 September 2010 and “she has indicated she will not be renewing on expiry”.
While Nyanda hasn't openly criticised the CEO, trade unions and analysts have noted that Sentech's failures are linked to the board and management's inability to develop and implement a coherent vision and strategy.
Last year, Sentech's withdrawal from the retail telecommunications market resulted in a R46 million impairment. Following continued pressure from its shareholders, the company discontinued the MyWireless, VAS and BizNet services.
The task team also blamed Sentech's degeneration into a loss-making situation on its attempt to introduce telecoms services without adequate funding, robust business plans and well thought-out strategies.
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