The biting winds persist in August at NetOne, and exactly 2 years ago, we witnessed the first ever critical Boardroom changes perceived by all as a vital — catalyst for transformation at the State-owned mobile telecommunication company, seeing top executives being sent packing.
Same time, once more in August, 11 executives were sacked but made a dramatic comeback after the NetOne Board intervened. However, this time it was at the expense of the CEO’s hard skull, despite his impressive reputation at the company, more precisely first ever recorded profit in two decades after inception.
The showdown must end now, and the Minister must reign in at NetOne and bring sanity, urgently end these problems in the best interest of the organisation otherwise the vultures will have the last laugh.
A lot of classic hearsay, speculation and mere rumours have been cited and published as the actual root cause of NetOne problems. This is not saying that there is no smoke without fire—which sentiment underlines why bogus claims can do so much irrevocable damage—hence #MondayBlues took time to get to the bottom of the matter. The revelations are shocking just to say the least. It was all nothing but mere smoke, without fire.
Minor misunderstandings are common among business associates—a better measure of business relationships is how often these occur and how we get over them. Two parties in a business pact need to be able to communicate to get over the inevitable rough spots. Having a long-shared history and one ultimate objective – NetOne success ordinarily provides a foundation of trust that makes it easier to clear up relatively minor misunderstandings.
The rift between the board and the executive is childish at best. It’s like giving relationship advice to a quarrelling couple so that they know there is a difference between fighting for what you want in your relationship and being in direct control of your partner. Firmly standing up for your wants and needs to the father of your children requires a little bit of skill that most people just do not have. They do not speak up, in the name of preserving love but building resentment that eventually reaches a tipping point!
It’s all an art of peaking up, transforming a complaint into a request.
It is our firm belief that in the interest of the entire NetOne family they will chose to speedily resolve their issues.
Remember the incoming President will want to decisively deal with the catastrophic failure of Parastatals and NetOne drama will be his first if not second bust stop by virtue of its strategic importance.
It is a public secret that NetOne has a long history of very weak balance sheets, very poor network service, possibly chronic bureaucracy present in all other state-owned entities and the taxpayer’s burden.
Figures do not lie they tell the bigger story projecting success or failure in black and white. Muchenje seems to have a commendable record as an audacious optimist who had managed to develop operational and staffing plans that seemed to be improving the financial viability of NetOne.
However, Minister Mandiwanzira has expressed doubt that Mr Muchenje’s suspension will affect the mobile operator’s performance considering that he joined the organisation early this year.
Last quarter Netone recorded $1 2milion profits, outside the lagacy debts, and they have had huge revenue collection margins, recording their first everprofit.
From the images showing marginal increase in EBITDA values (net income with interest, taxes, depreciation and amortization added back to it.) EBITDA c values analyze and compare profitability between different time periods, first May 2017 to May 2018 second the first 6 months of 2018 and finally the first quater of 2018.
$6.9 million profit after tax is a huge profit margin witha 10% revenue growth and EBITDA margin of 32% figures that indicate a negative balance in the previous year.
In the last diagram, that depicts the first quater of 2018, Revenue incresed by 3% from 26.8 to 27,7 showing significant positive growth trajectory.