Clive Fynn has left the building

By Nicola Mawson for Cisco

Johannesburg, 06 Feb 2007

Networking giant Cisco SA's GM Clive Fynn has left the company, after being in the position for a year.

News of Fynn's resignation follows confirmation that Cisco will create two new divisions locally, each of which will be 25% black-owned.

The company would not comment on whether Fynn's resignation is linked to an investigation by legal firm Cliffe Dekker into alleged financial irregularities at the local operation. From the UK, spokesman David Cook says: "We have a long-standing policy at Cisco not to comment on personnel issues or individual employees."

ITWeb was unable to reach Fynn and - on contacting Cisco's local division - was told he had left the company on Friday.

Changes ahead

Yesterday, Cisco confirmed news reports that it was restructuring its local operations and creating two new entities, to be run by black managers, and that Fynn was leaving the company.

Cook says the company's Middle East and Africa director Steve Midgley will head up the core company, while a new position of GM for business development would be created.

Shares in the existing operation will not be sold off, but the company will sell 25% in each of the new companies, Cisco Capital and Cisco Advanced Services, to black partners at market value. The capital company will act as a financial services company to aid customers to buy or lease equipment. The advanced services division is aimed at bridging the skills gap through expertise transfer from overseas technicians skilled in newer or more complicated areas.

Business Day yesterday quoted Mark de Simone, the company's VP for Africa and the Middle East, as saying Fynn had aided the company in adapting to local conditions. Fynn was leaving as he had other opportunities to tackle and because the new management structure had worked him out of a job, the report said.

Tip-offs, allegations

It emerged in August that Cisco had appointed Cliffe Dekker to look into allegations that two senior managers at the local operation awarded a contract to a black-owned company, later seeking equity in the empowerment firm. The law firm was also investigating the appointment of a local finance manager.

Business Report said in August the legal firm had been appointed after receiving a tip-off from a South African employee alleging victimisation of another suspended employee. The employee was allegedly suspended after questioning why a R25 million contract was awarded to Imvula Consulting.

The tip-off alleged a senior South African manager had attempted to indirectly acquire a stake in Imvula. The paper said the report was initially submitted to Fynn, and later sent to the networking company's London office after being ignored locally. At the time, Cliffe Dekker director Tim Mills confirmed the investigation, although Cisco neither confirmed nor denied this to the newspaper.