Chairman’s corporate governance review

‘We have been entrusted with stewardship of one of the most enduring brands in South Africa. We have developed a plan for turning the business around, we have inspired leaders and employees on board, all of whom are focused on giving our customers what they want.’

Jabu Mabuza, chairman.

As chairman of the Telkom board I am responsible for the leadership of the board and for fostering a culture of openness and constructive debate that allows for all views to be heard. I am pleased to report that both our board and committee meetings are held in an atmosphere of honesty of purpose, integrity and mutual respect; and direct, robust and constructive challenge takes place among board and committee members.

Good governance is at the heart of our board and committee structure. It is also the forum that sets the company’s values and empowers our management team to execute our strategy and be accountable for delivering against it.

We are committed to being responsible, accountable and fair in all that we do, to continue to build on the governance foundations we have established and uphold the highest standards of ethics, transparency and good governance. Our enterprise risk management framework is also designed to ensure thorough and transparent risk governance.

By appointing strong independent directors we benefi t from their expertise and perspective and the introduction of different thinking to our deliberations. We have established a clear balance of power and authority at board level that ensures that no one director has unfettered power. As a result the board is equipped not only to make decisions in the correct way, but also to make the right decisions.

Corporate governance means much more than a set of rules and processes governing the running of a company. As chairman of Telkom I aim to ensure not only that Telkom complies with all the relevant codes and regulations, but that we instil in our entire management team a commitment to achieving the best results in the most responsible way.

Telkom wishes to enhance shareholder value in such a way that we make a real and permanent contribution to the wellbeing of its people and the development of South Africa. In my role as chairman I shall do my best to ensure that Telkom adheres to the highest possible standards of corporate governance.

Jabu Mabuza

Chairman