MBABANE – Following a recent E80 million expenditure by the Eswatini Post and Telecommunications (EPTC), is it safe to say that the latter is finally out of the Intensive Care Unit (ICU) or it was just a calculated financial decision?
The Independent News recently gathered that the company has paid E80 million on a project referred to as Network Modernisation.Ironically, on May 09,2023, Themba Khumalo, EPTC Managing Director stressed that EPTC was in ICU and was struggling with the current wage bill, supplier payments and general operational costs.
“Revenues are on the decline as already alluded; we are fighting for survival from day to day. The corporation is in no position to address these issues yet. In a declining entity our focus should be on ensuring that it’s saved from collapse as the impact of that would be severe to all parties. I appeal for patience from all concerned and fully understand the impact it has on all. In general management it is prudent to ensure that revenue performance is at levels that will comfortably enable the company to cover all its operational costs and liabilities whilst saving for its infrastructure investment.”
In qualifying that, he also mentioned that the corporation focused on improving procurement processes, lower procurement costs for the main equipment and customer premises equipment such as Wi-Fi routers is non-negotiable. Direct sourcing from manufacturers and or regional distributors made this possible. The gross savings for the corporation have been excellent at times up to 50%.
“We are managing a very tight ship as we battle the effects of declining revenues whilst our operational costs remain at an elevated level. It is all our duty to reduce costs and look for ways of doing more with less as we transit through this difficult period. Let us all fight against waste of company resources in whatever form that might take, it is the shared responsibility of all employees to selfishly protect and grow EPTC.”
Khumalo further pointed out that the wholesale and retail prices declined due to high competition in the market and regulatory requirements.
“EPTC should strive to remain the premium quality provider to both Operators and other customers. Our biggest success has been the delivery of both voice and internet services over the same Fibre or Wireless connection. The customer is buying a service and not the technology from EPTC.”
“The shareholder had engaged the World Bank to review and recommend the best path for EPTC considering several previous consultancy reports and the Turnaround Strategy. It has been our strategy to ensure that Telecom wholesale and Retail are not unbundled and indeed the World Bank has recommended the non-bundling of the Telecom sections. However, the World Bank still recommends the unbundling of the Postal Business.”
When the MD sent the Memo, he was in engagement with Ministry of ICT, Finance, and government to finalise the way forward for EPTC.
He highlighted that it was his belief that Postal unbundling without transformation would be disastrous hence the effort to try and secure a transitional period to rebuild and transform Postal business and secure a better successful future for the business regardless of the structure adopted in the future.
A questionnaire was sent to the corporation regards to E80 million expenditure against the ICU stance. EPTC responded through Bongani Mtshali.
Firstly, the question is ill informed and illogical. Any business in ICU has to draw up a turnaround strategy to assist its recovery process. This matter has been approved by all governance structures in pursuit of achieving an efficient and sustainable EPTC. The required capital investment is much higher than E80 million for strategic reasons.
Mtshali also responded on why the MD and Board Chairman recently went abroad after the payment was made and why there were no technical experts forming part of the travelling team
“This is an internal matter that received all requisite approvals, the mission was clearly scoped to be addressed by the mentioned officials, it had no relation to any payments of any nature. Your sources are clearly misguided on the requisite composition of the mission. It was a high-level engagement in support of the strategic plan for the rebuilding of EPTC’’
EPTC justifies staff composition!
MBABANE -The EPTC has justified its staff composition amid the fact that most executive members have previously worked with the Managing Director at former places of employment.
The fact that EPTC EXCO is dominated by females, was also put into question by this publication. Our News Desk wanted to know if the female domination was part of the quest by organizations to prioritize women empowerment?
Bongani Mtshali pointed out that EPTC employed the best available candidates in the market and gender equity where practical is always supported. The executive recruitments were outsourced and supported by governance structures of the corporation.
“As already alluded to above, EPTC recruitment was professionally conducted and produced a shortlist of potential candidates for the well constituted panel of interviewers (external and internal). The outcome reached was indeed a selection of the best candidates in the market to drive the new strategic direction of EPTC.”
The corporation was also asked to clear allegations that a certain recently filled position was occupied by an officer who was related to the MD.
“Your article is obviously motivated by an aggrieved party determined to tarnish the reputation and or image of the MD. As an entity that adheres to strict governance, all conflicts of interest were declared prior to the interviews, and the MD has no knowledge of such an alleged relationship.”
On the previously sent MEMO to staff, the MD highlighted that the Board of Directors approved a structural Review for the Executive team, with focus on aligning the structure to new business demands and improving efficiencies.
“The priority for the corporation is now to ensure we survive through this difficult period and in the process align structures with business requirements. The chart below depicts the new Executive structure, you will notice that we have only three executive reporting to the MD.”
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