State can’t set strategy for us – Telkom chair
New Telkom board chairperson Jabulane Mabuza believes that the government, its major shareholder, cannot determine its strategy.
“The day shareholders give you a strategy, they may as well come and run the business,” he was quoted as saying by Business Day today.
“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 to 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%. The Public Investment Corporation owns a 10.9% stake.
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.
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 socioeconomic goals and the public sector’s needs.