KENYA TELKOM SEARCHES FOR COMPANY DOCTOR TO GIVE IT THE RIGHT MEDICINE
Kenya Telkom is looking for a consultant to carry out a 90 day assignment that will provide answers as to how the near-bankrupt company can be restructured. Cynics might argue that because the Government lacks the will to deal with this crisis, it would like someone else to deliver the bad news. Kenya Telkom MD John Waweru advised the Government at an early stage after he took over of the scale of redundancies required and it failed to take.
The tender says:"the Government is now desirous to restructure Telkom Kenya Limited and prepare the company to operate in a competitive environment. In particular, the Government intends to put in place an accelerated restructuring programme that will enable the company not only to cope with the demands of a rapidly changing and dynamic sector but also ensure its long term sustainability in a competitive environment". With the competition framework almost in place, most would argue that this was rather late in day.
The consultant would be tasked to investigate the following areas:
* Carry out an investigative business analysis of the company taking into account the current and emerging regulatory environment.
* Establish the market value of the company.
* Propose financial restructuring measures that will ensure the company achieves an optimal debt to equity mix.
* Establish an inventory and determine current value of all physical assets.
* Determine the efficiency of the existing network to provide modern telecommunication services in a cost effective manner.
* Prepare a Network Development plan including transition arrangements to the Next Generation Network (NGN) or any other modern technologies.
* Propose an appropriate staff rationalization programme in the context of the recommended restructuring plan.
* Provide necessary legal advisory services.
The Lead Consultant is expected to provide the full range of expertise in-house or may associate with other suitably qualified firms to provide the required consultancy services in telecommunications, finance, valuation, legal, human resource management and organizational development. It is expected that the assignment will take 90 days to complete. Telkom South Africa has been rumoured to be an interested bidder if a successful restructuring can be carried out that will deal with the current massive over-staffing.