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Fri May 25 12:25:54 SAST 2012

'Eskom-style' crisis hits rail system

Marcia Klein | 06 June, 2010 00:210 Comments

News out this week that there was an "Eskom-style" crisis at the Passenger Rail Agency of SA points to yet another looming infrastructure crisis, and to the same kind of lack of response we have witnessed to similar warnings about our power and water supplies.

This is by no means the first time we have heard of looming difficulties in our rail system.

Grapevine remembers speaking to Prasa CEO Lucky Montana early last year, when he sounded the same warning - and this was surely not the first time he had done so.

He said then that the life cycle of SA's rail assets was nearing its end. He warned that replacement would cost tens of billions of rands, and he warned that the replacement of these assets was not in Prasa's budget.

It is now a year later, and he is still saying the same things and sounding the same dire warnings.

Director's deafening silence in BP oil spill disaster embarrassing

A voice we have not heard in the BP Gulf of Mexico oil spill crisis is that of Anglo American CEO Cynthia Carroll.

She is intimately involved actually, as she is a non-executive director of BP, with the grand title of member of the chairman's and safety, ethics and environment assurance committees. For that she pulled in a fee of £90000 last year.

Her quietness on the BP issue could reflect some embarrassment, particularly as she regularly repeats her commitment to safety on Anglo's mines.

Her BP directors' fee is up for review this year.

Grapevine wonders whether the small matter of the devastating oil spill, not to mention the loss of lives and the ongoing environmental crisis as a result, will sway the remuneration committee to think of changing it.

Misgivings over the 'retirement' of Telkom boss

ONE suspects that not many people will be too upset about the "retirement" of Telkom CEO Reuben September.

If reports of his fights with chairman Jeff Molobela are true, many might even be thanking the latter for forcing Telkom's hand to bring some new energy to the lumbering telecommunications group.

Grapevine has some misgivings, though.

Molobela is a representative of government, which has retained a significant stake in Telkom.

If Molobela managed to get him out, this immediately fuels concern that we may expect some cadre deployment to fill Telkom's top post.

Telkom is not a parastatal. While government owns a big chunk, it was commercialised and listed under the guidance of Sizwe Nxasana, and has both local and international shareholders. Nxasana seemed to focus on business imperatives for Telkom. After a short time under the guidance of Papi Molotsane, Telkom seemed to shift its focus from business imperatives to boardroom intrigue, and one can imagine that the eye got taken off the ball.

September, known as an operations rather than a big-picture kind of guy, was not the right man to take it forward at a time when a strategist was required. This is the kind of person it needs now.

A political appointment at this time is not optimal.

Two hats for big-headed Manyi a sure recipe for conflict

Jimmy Manyi famously claimed to be big headed enough to wear more than one hat, but, surprising as it may be to him, not everyone agrees, including his own boss.

Manyi's story is a lesson for us all in SA, where wearing numerous hats is gladly accepted with special dispensations made for serious conflicts of interests through the convenient recusal from decisions that might be too suspicious.

Companies, government departments and state-owned entities need to stand firm in their absolute refusal to employ anyone who holds positions elsewhere, no matter how expedient turning a blind eye is. - kleinm@sundaytimes.co.za

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