New Telkom board chairman Jabulane Mabuza believes that the government, its shareholder, can not determine its strategy, Business Day reported on Tuesday (20 November 2012).
“The day shareholders give you a strategy, they may as well come and run the business,” he was quoted as saying.
“I don’t see the government as a shareholder any differently to the other shareholders.”
This was in stark contrast to the government’s plans to impose a new blueprint on the parastatal, according the newspaper.
The government devised policies that informed Telkom’s strategy, Mabuza said.
The government is the JSE-listed company’s largest shareholder with 39.8 percent. The Public Investment Corporation owns 10.9 percent stake in Telkom.
Mabuza said Cabinet could not impose strategy on a listed company.
“It cannot work that way. Government, as a shareholder, has a forum that it can use to persuade other shareholders,” he told Business Day.
Mabuza was appointed on Friday and had to develop strategies that would be sold to shareholders. He believed Telkom could strike a balance between meeting the government’s socio-economic goals and the public sector’s needs.