Government has extended the contract of Telkom chairman Jeff Molobela, but only until the end of December, TechCentral has learnt from a senior source at the JSE-listed telecommunications group.

Molobela was appointed to chair Telkom’s board a year ago for a one-year period, the normal length of the term.

In terms of a special share it holds in Telkom, known as the “class A” share, government has the right to appoint the group’s chairman. That right expires early next year when the class A share falls away.

The matter was apparently discussed in a cabinet committee meeting last Wednesday.

Former communications minister Siphiwe Nyanda appointed Molobela to the Telkom board. The two men are believed to be close.

Nyanda was sacked last month by President Jacob Zuma and replaced with former deputy communications minister Roy Padayachie.

A senior Telkom source says it is likely that Molobela’s contract was extended by only two months — until the end of the year — while Padayachie determines whether to replace him or extend his contract for a full year.

Molobela has proved to be a controversial figure at Telkom. He played a pivotal role in the departure of former group CEO Reuben September. And disagreements he had with Peter Nelson are believed to be the main reason the former chief financial officer quit the group. — Duncan McLeod, TechCentral