News / National
TelOne to retrench 1 700 employees
13 Jul 2012 at 07:47hrs | Views
TelOne is set to retrench 1 700 employees as the parastatal moves from analogue to digital technology, board chairperson Amos Mushaninga told Parliament yesterday.
The TelOne Board appeared before the Parliamentary Portfolio Committee on Media and Communication Technology chaired by Mbizo MP Settlement Chikwinya to speak on their operations.
Mushinga disclosed that Tel-One currently has 2 500 employees and it might not be able to use all of them with the new digital technology.
"We are planning to retain only 800 employees, meaning that the rest have to go so that we avoid strikes for salary payments," Mushaninga said.
Mushaninga also disclosed that they were soon to embark on a door-to-door debt collection exercise from individuals and firms, including government institutions owing the parastatal a whopping $310 million.
Of the $310 million, $80 million was owed by different government departments and the negotiations to settle the debt with the Ministry of Finance were likely to take long in meeting the capital requirements of the institution as they digitalise.
Mushaninga said TelOne was unable to compete in the market because of the slow pace at which the State Procurement Board handled tenders. He also said they would soon advertise for the CEO's position as the incumbent one was acting.
"We are in the process of finding a strategic partner since government is unable to capitalise TelOne," he said.
The TelOne Board appeared before the Parliamentary Portfolio Committee on Media and Communication Technology chaired by Mbizo MP Settlement Chikwinya to speak on their operations.
Mushinga disclosed that Tel-One currently has 2 500 employees and it might not be able to use all of them with the new digital technology.
"We are planning to retain only 800 employees, meaning that the rest have to go so that we avoid strikes for salary payments," Mushaninga said.
Of the $310 million, $80 million was owed by different government departments and the negotiations to settle the debt with the Ministry of Finance were likely to take long in meeting the capital requirements of the institution as they digitalise.
Mushaninga said TelOne was unable to compete in the market because of the slow pace at which the State Procurement Board handled tenders. He also said they would soon advertise for the CEO's position as the incumbent one was acting.
"We are in the process of finding a strategic partner since government is unable to capitalise TelOne," he said.
Source - newsday