Telkom Chairperson Resigns Suddenly

The Chairperson of South Africa's landline incumbent, Telkom, Nomazizi Mtshotshisa has suddenly resigned from the company while in London for a meeting with Vodafone. Her resignation is effective from tomorrow, a full two years earlier than her current contract.

Mtshotshisa was in London to discuss realigning the current shareholder pact between Telkom and Vodafone over their mutual mobile network, Vodacom. It was reported last week that the two equal shareholders are preparing to scrap the existing deal which prevented Vodacom from expanding outside Southern Africa.

Telkom spokesperson Lulu Letlape said Mtshotshisa resigned for "personal reasons". There have been reports in local media that she may be joining one of the local empowerment groups (BEES) which are aiming to take a stake in Vodacom.

Telkom is reportedly interested in trying to sell its stake in Vodacom and switch to investing in the faster growing MTN. Mtshotshisa did not support this move, considering that the relaxing of the shareholders pact with Vodafone would deliver the same growth potential.

Shirley Lue Arnold, former non-executive chairman of Ernst&Young Southern Africa will take up the role as Chairperson of Telkom from Wednesday."

Posted to the site on 30th October 2006