September gets top Telkom job

By Kimberly Guest for Telkom

Johannesburg, 22 Nov 2007

Telkom acting CEO Reuben September (50) has been given the top spot in a permanent capacity.

The 30-year Telkom veteran has held the position in an acting capacity since April, following the abrupt departure of Papi Molotsane after 18 months of service.

For some months, it was widely speculated that September would not get the top post, as government did not consider him to be a heavyweight.

However, one analyst, who requested anonymity, says Telkom`s board had little choice.

"After having held the top post for eight months, it would have been inevitable that September would have left the organisation if he was not appointed. Certainly, there is no doubt that his departure would have been a real loss to the floundering telco.

"I doubt there will be much movement on the back of this announcement. The general sentiment is that the board could have done better, but then again, it could have done worse."

Lashing out

Meanwhile, Cabinet has hit back at the Sunday Times for what it calls "false reports" on the matter.

Last weekend, the Sunday Times alleged president Thabo Mbeki had "blocked a recommendation" that September`s position at the company be made permanent.

The paper went on to reveal it had learnt that Mbeki had tasked the Department of Communications with compiling a report on, among other things, the circumstances of Molotsane`s resignation and allegations that September played a role in this saga.

This morning, Cabinet rejected the article: "These reports are nothing but an embarrassing fabrication that only serves to mislead the public and present the president in a bad light. We once again call upon members of the media to refrain from publishing unsubstantiated stories, as this will discredit the media houses that allow themselves to be used by anonymous and so-called 'unnamed` sources."

Telkom has told shareholders that its board followed a "rigorous" evaluation process, including international benchmarking and consultation with the Department of Communications. The consultation with the communications department is a requirement of Telkom`s articles of association.

A senior source within the Department of Communications says it is not unusual for Mbeki to be briefed on changes in leadership at state-owned entities.

"Although Telkom is considered a private company, it is considered extremely important for the country, and a letter saying why a change needed to be made and the decision to appoint a particular person is considered the most polite way to inform the president," the source says.

(Additional reporting by Paul Vecchiatto)