In a surprise development, Dave Smith, the CEO of state-owned telecommunications infrastructure provider Broadband Infraco CEO has resigned. The resignation takes effect immediately.
It appears the final arrangements for Smith’s exit were decided this morning at a board meeting.
Infraco chairman Andrew Mthembu says the board is liaising with shareholders (government) to put in place the “necessary transitional arrangements until the appointment of a new CEO is finalised”.
The discussions with the shareholders will also address some of the interventions required following the publication of an internal audit report.
TechCentral first heard about Smith’s resignation on Wednesday but this publication has not yet been able to reach him for comment. He apparently informed the board of his intention to leave in mid-February.
Smith’s resignation comes just three months after Infraco launched its first commercial services.
It’s far from clear if Smith’s resignation is linked, but earlier this month online news site Moneyweb published details of an internal audit report by Deloitte that revealed several alleged irregularities at the company, including missing documentation and the flouting of tender procedures.
It was reported that Mthembu and nonexecutive directors Tumi Magasa and Cornelis Groesbeek had stakes in companies that had been awarded tenders by Infraco. Magasa has also resigned.
“The necessary sanction will be taken against any accountable person found to be responsible for this noncompliance,” Infraco communications head Thamie Mthembu said at the time.
Deloitte was asked to conduct the audit on Infraco last year.
Mthembu said the audit report highlighted shortcomings related to “internal control processes in the procurement and contract management environment of the company”. — Staff reporter, TechCentral
- Subscribe to our free daily newsletter
- Follow us on Twitter or on Facebook