We were right not to sell Telkom: Cwele - TechCentral

We were right not to sell Telkom: Cwele

The strong full-year financial results published by Telkom on Monday “underscore the correctness” of government’s decision not to further privatise the JSE-listed company, telecommunications & postal services minister Siyabonga Cwele said in a statement.

Telkom reported a 12,4% improvement in headline earnings per share on the back of operating revenue that climbed 9,8%. The company reported a strong performance from its mobile division, although the number of fixed lines in service declined again.

“These strong results underscore the correctness of government’s decision, working with other shareholders, to invest in turning around the company instead of selling it,” Cwele said.

Former communications minister Dina Pule in 2012 blocked a plan by former CEO Nombulelo Moholi to sell a strategic stake in Telkom to Korea’s KT Corp. Pule’s decision was backed by cabinet, which rejected the plan.

“Since the cabinet decision of June 2012, shareholders reconstituted the board, which appointed a new management team,” Cwele said. “These changes have seen the company’s share price moving from a low of R12,50 to the recent R77,64.”

Cwele urged troubled state-owned companies to “learn from Telkom” about how it achieved its turnaround. He praised the company for achieving a strong performance despite the “tough global economic environment”.

“It is crucial that we make the cost of data and communication to be more affordable to ensure that more people meaningfully participate in shared economic growth. We call on all operators to look at ways in which costs can be brought down,” the minister added.  — (c) 2017 NewsCentral Media

2 Comments

  1. Well well Dr S Cwele have we woken up as you here state the government owns Telkom then why do you not re-act to known breaches of the PFMA and Constitution as published in the PFMA(Public Finance Management Act). Or are you protecting someone like your friend Pravin Gordhan’s publically known cadre, Jabu Mabuza (Chairman of Telkom) whilst state assets are being farmed out what happened to the correspondence you personally received some 18 months ago wanting your rubber stamp to the motivation received from the SIU Tribunal under section 2.2 or are you attempting to hide that as well.
    Time to be held accountable for your errors as it is obvious someone is embracing fraud and corruption with your knowledge. I noticed some while ago an article was published that the then Minister of Finance who had knowledge of the aforementioned attempted to remove Telkom SOC Limited from the PFMA but sadly this was false information as they are proudly SA Government owned together with PIC. they own 51%. maybe they were doing a private function whilst they squandered taxpayers assets and money and as a direct result the SA Post Office also under your reign posted a loss in revenue of R1,5 billion which you helped bailout at taxpayers expence.

  2. Now one can ask whilst Pravin Gordhan is venomously chasing after the SOC’s to be forensically investigated why is Telkom SOC being protected. Is it because the request for Telkom SOC’s SIU Investigation came from the Office of the Presidency and Mr Gordhan continiously attempts to defame President Jacob Zuma as it was obvious that the default was at Treasury under Gordhan’s watch, who should have been fired long ago.