Telkom needs governance changes – PIC

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TelkomW INDEPENDENT MEDIA Picture: Leon Nicholas.

The Public Investment Corporation on Friday called for a change in the way Telkom is run after a fall in profit and share price the fixed-line operator.

Telkom earnings fell as much as 83 percent in the six months to September as it struggled to compete with cellphone groups, the firm said this week.

The shares dipped 45 percent this year, compared with a 15 percent rise in the all share index.

“Telkom’s performance… is destroying shareholder value,” PIC chief executive Elias Masilela said on Friday. “We would like the governance of the enterprise to be changed.”

Directors, including chief executive Nombulelo Moholi and chairman Lazarus Zim, left the firm recently. Telkom has appointed two board members and yesterday named Jabulane Albert Mabuza as its new chairman. – Bloomberg

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