Telkom looked outside its own structures for new leadership when it named United States-educated, charismatic former youth leader Papi Molotsane as its CEO.
A senior Transnet staffer described Molotsane as a “people’s person” who can be firm.
The Transnet staffer tells a story of how at rail engineering division Transwerk, Molotsane’s last appointment at Transnet, he was faced with labour unrest and threats of protest. He went to meet the workers in person and laid down the law: their threats and intimidation would not wash.
Molotsane is a director of Arivia.kom, South Africa’s America’s Cup Challenge and Fike Investment.
His qualifications include a Bachelor of Science in Business, a Bachelor of Engineering Technology and Master of Science in Business Administration. He has also completed the Stanford Executive Programme in the US.
He now walks into an environment characterised by a range of volatile relationships, most notably with labour and the regulator Icasa.
Dawid Durie, telecoms spokesperson for Solidarity, said that he hopes the new CEO will not radically change the recently adopted strategy at Telkom. He confirmed that the union will seek an extension of a moratorium on retrenchments which expires next March “for at least three to five years”. “If he wants something from labour he has to give something.”
“Mr Molotsane has the skills and the leadership style that the board believes are required to deliver Telkom’s growth strategy and commitments in an increasingly competitive telecommunications environment,” said Telkom chairperson Nomazizi Mtshotshisa.
Said Molotsane: “Telkom’s vision is to be a leading communications provider. Telkom has chosen to increase its focus on specific growth opportunities while continuing to balance the needs of all its stakeholders. I am honoured and inspired to be taking on this role at this time with a mandate to pursue leadership in all spheres of Telkom’s business.
“I am looking forward to working with the Telkom team and leading Telkom in an exciting and challenging telecommunications market.”
It was also announced on Wednesday that the top structure of Telkom is to be streamlined to ensure optimal reporting lines and executive focus.
Reuben September, currently chief technical officer, has been appointed chief operating officer, while Mandla Ngcobo has been named chief of corporate affairs. Ngcobo is Telkom’s group executive for legal services at present.
September’s position will be filled in due course, Mtshotshisa said. Nxasana remained tight-lipped about his future prospects.
The new structure will take effect from September 1.
Mtshotshisa said the criterion to fill the position of Telkom CEO was simply to find a skilled South African with managerial credentials irrespective of colour or gender. She said the state, Telkom’s single largest shareholder, did not impose the candidate nor influence the process.
Molotsane said he would be resigning from Transnet, adding that other terms and conditions, including his tenure, were still under discussion.
“My priority is listening at the moment. I am quite aware of criticism, stemming from Telkom’s high tariffs, but what’s more important before commenting on this is to sit down with the team and understand their comprehension of the situation and also to be able to assess the needs and dynamics before any action. It’s still early days,” he said.
On the subject of the imminent second national operator, Molotsane said: “This is good for customers, competition is always good.”