Friday, March 27, 2015

Will Collymore's Contract be Renewed.


Bob Collymore's contract is up for renewal in 4 months, and he's yet to hear from the board, of which he's a part of, whether he's coming back. From the Business Daily:
Safaricom chief executive Bob Collymore has not heard from the company’s board of directors about the renewal of his employment contract, which expires in four months’ time. 
Mr Collymore’s contract ends in August, having been extended for two years in 2013. There is a strong expectation it will be renewed again in the absence of any overt succession planning.
I wonder what the board is waiting for on this. Everyone agrees that since Collymore took over, the company has only moved from strength to strength, particularly in non-voice/sms revenue.

Perhaps it has something to do with this:
Telecoms operator Safaricom cancelled a multi-million dollar tender it had awarded to Mobinets SAL Limited after it found out that the Lebanese firm bribed its employees to secure the lucrative contract, a Nairobi court has been told.
Safaricom says in papers filed at the Milimani Law Courts that Mobinets colluded with its employees to ensure the tender went to the Lebanese firm.
Mobinets, which went to court to get Safaricom to honour the contract, apparently has already poured about a billion shillings in honouring the contract:
Mobinets has completed the functional specifications that Safaricom approved, purchased and shipped equipment worth $6.2 million (Sh558 million), and entered into contractual agreements with external hardware and software solution partners valued at $5 million (Sh450 million)
I fall squarely on the side of Safaricom here. Though questions arise about which employees are these that Mobinets bribed, and does it have anything to do with the recent exit of twofour executives.

Meanwhile, I imagine that the board has some very difficult questions for Collymore on just how these oversights happened on his watch and perhaps this is what's holding up the the renewal of his contract. I'll be keeping my eye on this. Peace!!!

Thursday, March 26, 2015

Focus on Safaricom (The Executives who Left)


I want to try something new guys, I want to try writing about one topic: Safaricom. Why? Because I'm interested in the company, it being the chief tech company in the country and the one with the largest market cap of 640 billion shillings.

This will be in the same vein as John Gruber who primarily writes about Apple as a company: giving insights, thought pieces, and theories on the company. So that's what I want to try do too. Unlike him, though, I currently don't have sources in Safaricom of any kind but if I keep at this, maybe, I'll get some.

So what makes me qualified to even write about Safaricom? For starters, I'm Kenyan and I use their products. Secondly, I read a lot about them and may be able to make connections that other people may miss, or not want to say. Third, I'm a techie and therefore able to look at things from that view. Time will tell whether I'm any good at it.

So for the first thing I want to talk about is the two executives who left the company recently. From the Business Daily:
“These changes have been necessitated by an appreciation that we as a business have become disconnected from our customers’ needs at various levels,” Mr Collymore said in an internal communication to the staff.
“These changes are necessary for us to be truly reflective of the demands of our customers and to prepare ourselves for the heightened competitive environment in which we are operating,” 
These changes are probably due to the fall out from the current bundles faux pas and also the competitions issues the company has had which led to all competitions the company runs to be called into contention. While there are probably other issues that led to them leaving, I suspect that these two issues brought things to a head and the two executives chose to leave. That's just my two cents. Peace!!!

Update[26-03]: Two more executives have exited:
The telecommunications firm on Wednesday confirmed the resignations of Moris Maina, head of content and internet and Timothy Nderi, the head of contact centre.
Given this I'm adding that this may have something to do with this multi-billion shilling tender here. It claims that senior employees were bribed to favour one company. More on this in a later post.