ANTHONY BUTLER: If only Telkom rebound could pave way for ailing SOEs

2022-01-28 07:11:00 AM

ANTHONY BUTLER: If only Telkom rebound could pave way for ailing SOEs 🔒

ANTHONY BUTLER: If only Telkom rebound could pave way for ailing SOEs 🔒

But its recent past may simply be an aberration and the trajectory of the SA Post Office could be the future for the sector

Anthony ButlerPicture: BLOOMBERGThe career of former Telkom CEO Sipho Maseko, who stepped down at the end of last year after nine successful years at the helm, raises interesting questions about the future of our state-owned enterprises (SOEs).Maseko’s leadership has been presented as a model to be followed. But does it really offer a guide to a better future?

In the early 2000s Sizwe Nxasana led Telkom to profitability and a partial listing on the stock exchange. It then fell on difficult times, with one failing CEO after another. The company’s bloated staff complement, exploitation of its monopoly position and technological backwardness all marked it out as a typical SOE.

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28 January 2022 - 05:00 Anthony Butler Picture: BLOOMBERG The career of former Telkom CEO Sipho Maseko, who stepped down at the end of last year after nine successful years at the helm, raises interesting questions about the future of our state-owned enterprises (SOEs).jQuery(document).Major projects and outages undertaken this year will continue to exert pressure on the supply side, raising the risk of load-shedding in the short term.27 January 2022 - 15:13 Gary Rynhart Elephant, Hluhluwe-Imfolozi National Park on April 16 2017.

Maseko’s leadership has been presented as a model to be followed. But does it really offer a guide to a better future? In the early 2000s Sizwe Nxasana led Telkom to profitability and a partial listing on the stock exchange.preventDefault(); jQuery('html, body'). It then fell on difficult times, with one failing CEO after another. Key among these are the interventions to extend the operating life of the Koeberg Nuclear Power Station, which will see the facility operating at half its generating capacity for most of the year. The company’s bloated staff complement, exploitation of its monopoly position and technological backwardness all marked it out as a typical SOE.attr(this, 'href')). Maseko joined Telkom in 2013 alongside incoming chair the late Jabu Mabuza. Today it’s just known as “The Kop”, probably the most famous football terrace in the world.

A turnaround strategy was drawn up and implemented.top }, 500); }); jQuery(document). De Ruyter added that Eskom had deployed an additional 450 security guards to its key sites, and was using advanced surveillance technologies such as intelligent cameras and drones equipped with infrared cameras to protect its assets. The company caught up with its rivals in mobile telephony, information technology and fibre. A smooth transition plan means these advances will continue into the future.bind('click', function () { jQuery(this. Or so we hope. The unit is going through the testing and optimisation phase and will contribute intermittently to the national grid over the period to full commercial operation by July 2022, the state firm said. Can the Telkom rejuvenation experience be repeated now that President Cyril Ramaphosa’s new dawn has broken? Most SOEs still veer from one crisis to another, raising the costs of basic goods and services to the detriment of citizens.lightBox({ imageLoading:"https://www. In Thailand, which in 2019 saw nearly 40-million tourist arrivals (accounting for about 16% of GDP, with more than 4-million people working in the sector) the tourism portfolio is a top-ranking cabinet position.

They destroy small businesses, obstruct infrastructure investment and threaten the fiscus. One fear must be that Telkom’s recent past may simply be an aberration.co.” Eskom said it will utilise the maintenance and refuelling outage on Unit 2 to implement the SGR project which entails the replacement of the unit’s three steam generators. The broad alignment between Mabuza and Maseko was crucial in providing the CEO space to develop and then implement a turnaround strategy. They enjoyed considerable insulation from political interference because the state was merely a minority shareholder.gif", imageBtnPrev:"https://www. Telkom did not have to traverse the regulatory labyrinth that makes investment so complex for fully state-owned entities. Weather forecast Rain readiness plans continue to be effective against high and early summer rainfalls, Eskom said. The sector provides about 740,000 direct jobs and more than 1.

We have seen a reshuffling of utility boards and CEOs since Ramaphosa became president in February 2018, but little progress with structural reforms.co. Impediments include the role of parastatal supply chains in formal and informal political funding; the power of “privatisation” resistant trade unions; and an ideological predisposition towards state-driven development. These forces are bound together and operationalised by the ANC’s continued interference in the appointment of senior executives and board members.png", imageBtnNext:"https://www. Coal stock levels remain healthy with an average 46 stock days. The recent trajectory of the SA Post Office (Sapo) suggests a quite different vision for the future to Telkom. Sapo had also become a technological laggard, gradually losing its core revenue stream of mail delivery.co. Additionally, there is both pent-up demand (delayed trips), and in some richer economies a savings boom.

Banker Mark Barnes was appointed CEO in 2015, and launched a fresh strategy to exploit Sapo’s huge client base and physical infrastructure, deliver social security grants and offer financial services to the poorest South Africans. Good progress is also being made in reducing the rand per ton cost of coal, with coal costs reducing in real terms. Like Maseko, Barnes enjoyed the broad support of his board, and the parastatal was recapitalised by the state to enable its rejuvenation.png", }) }); function getSelectedText() { if (window. However, he resigned a little more than two years ago as a result of a disagreement about the full integration of Postbank and Sapo. At the time he claimed Sapo had “turned a corner”, and insisted his comprehensive overhaul of the executive team had put in place a firm foundation for continued success.getSelection(); return range. Eskom group chief operating officer, Jan Oberholzer said that 51 days of load-shedding were implemented since 1 April 2021, compared to 47 days for the 2021 financial year ended 31 March 2021. But it wasn’t long before a familiar litany of problems recurred: dubious suspensions of senior executives, repeated acting appointments to key positions and collapsing operations. The market has shifted towards younger travellers who are staying longer.

The relentless decline of SA’s major transport, logistics and defence parastatals has been depressing.selection. More disheartening still, however, are the SOEs that have undergone complex, painful and costly restructuring exercises and begun to operate as orthodox enterprises: Telkom and Sapo, but also SAA and the SABC.9% is not ideal,” said Oberholzer. With no change in the underlying approach of the ANC to deployment, and no intellectual shift with regard to the role of the state, the experience of Sapo, rather than that of Telkom, may be our best guide to the future of our SOE sector.selection. And that, I am afraid, includes Eskom. • .text } } } function createTweetLink(text, e) { var oldTweetLink=document.” Eskom executives stressed, however, that a structural shortfall in generation capacity of between 4,000MW and 6,000MW needed to be addressed, as Eskom is not responsible for procurement of new generation. Spending on significant events or landmark experiences is likely to be increasingly sought after.