Telkom’s board chair Sello Moloko steps down to focus on Absa

Outgoing Telkom board chairperson Sello Moloko has explained his decision to leave the state-owned telecommunications company.

Moloko says leaving Telkom is based on the demands of the job which were too much to handle for him.

Telkom has announced it has already started the process of searching for Moloko’s successor as he will step down in March next year.

Following an announcement on Wednesday, Telkom is reported to have attracted a number of possible replacements to take over from the outgoing chairperson, Moloko.

“Mr. Moloko was appointed as an independent non-executive director of the board on 20 March 2018 and became chairperson of the board in June 2019,” Telkom said in a statement.

“He served as a member of the remuneration committee and chairperson of the nominations committee. These board committees will remain duly constituted following Mr. Moloko’s resignation.

“The board and management are grateful to Mr. Moloko for his valuable contribution and leadership, particularly during the challenging economic times imposed by the Covid-19 pandemic.”

As he also chairs one of South Africa’s biggest bankers, Absa, it has come to BusinessTech Africa’s attention that Prudential Authority pushed for Moloko’s resignation so he can focus on the bank as Business Day reported.

Absa announced a year ago that it had appointed Moloko as its next chairperson, bringing an end to Wendy Lucas Bull’s near 10-year stay at the helm of the financial services giant.

Speaking for Telkom is Group CEO Serame Taukobong who said the telecommunications entity’s commitment to return cash to shareholders remains a key element.

“Telkom is in the final year of the three-year dividend policy suspension period. The board remains committed to reinstating the dividend policy at the end of 2023 [financial year] and is reviewing the policy,” Taukobong said per Sunday World.

“Telkom aims to continue to create value and generate sustainable positive free cash flow to reward shareholders in the medium term once our working capital cycle stabilises in line with new demand patterns and evolving customer requirements.”

It is also reported that the Soweto-born Moloko, who boasts 30 years of experience in the financial services industry, officially started chairing Absa in April this year.

Apart from his banking experience, he worked for various companies in the past and the list includes the likes of Alexander Forbes, Sibanye-Stillwater, and General Reinsurance Africa Limited (a Berkshire Hathaway company) to mention a few.