Telkom’s Zim departure first of many: DA
The Democratic Alliance (DA) believes that the departure of Lazarus Zim as Telkom’s chair is the first of many within the group.
Zim will step down as chairman and director of Telkom at the end of the company’s annual general meeting in October 2012.
Lazarus Zim was appointed as a non-executive director for a three year period and as chairman for a one year period on 16 February 2011. He was re-appointed as the chairman of the Telkom board of directors in February 2012.
Marian Shinn, shadow minister of communications said: “His departure is likely to be the first of many of those in Telkom who invested extensive energy and time into developing a strategic turnaround and expansion deal with South Korea’s KT Corp that Cabinet rejected as soon as it was tabled on May 30.”
Shares in Telkom rallied in afternoon trade on the JSE on Friday, up 4.48% to R19.34, ahead of a cabinet meeting scheduled next week to discuss a future strategy for the group.
“It must have been untenable for him – and many of his team – to have been so brutally betrayed by the major shareholder which instigated the negotiations with KT Corp. Despite monthly meetings with Communications Minister Dina Pule, he was given no hint of the fact that Telkom was negotiating on behalf of an unwilling seller,” Shinn said.
“Mr Zim obviously has insight into cabinet’s intentions for Telkom and wants to play no part in these. It is a sad day indeed when government ineptitude chases away talented and dedicated business people who want to play a constructive role in making South Africa work,” the shadow minister said.
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