The sudden resignation of Axiata Chief Operating Officer Dato Izzadin Idris after just helming the position for just over 1 year, is rather surprising and unexpected.
After all the CEO was personally groomed by predecessor Dato Sri Jamaludin Ibrahim a well-respected individual in the telecommunication industry who identified Izzadin as his successor when he decided to leave the company he helped build. Trusting Izzadin to lead the group into the next phase of its expansion as a regional telecommunication powerhouse.
Accordingly, the group as an interim move has appointed Axiata’s Chief Executive Officer for its Telecommunications Business and Group Executive Vice President Dr. Hans Wijayasuria, and Group Chief Financial Officer Vivek Sood as interim joint acting Group CEOs effective 1 June 2022. Seat warmers while a suitable candidate is appointed.
During his one year plus tenure, Izzadin had navigated Axiata through some precarious periods for the telecommunication company, however mostly he had managed to steady the ship, revitalise the group, revived Celcom, and inject new gusto into its promising businesses like edotco, ADA, and Boost. While Dato Jamal served the group for 13 years, Izzadin known in the circle to be very focused on the job rather than be involved in politics has not been given time to shine or put his leadership skills to work. Axiata Group, a respectable regional player, is in a very dynamic milestone of its existence, where its growth potential has gotten analysts excited (the group via Boost received the Digital Bank license) and is also gearing up for the global 5G rollout.
However, it is the latter that could be the reason behind the removal of Izzaddin, Axiata in its statement said his last day will be 1 week from the announcement and the fact no successor was identified indicates a possible “asked to leave” scenario, even though the official comment was “His stepping down is based on mutual cessation of his service contract between him and Axiata.” In other words, his contract was not renewed.
With the June 31 deadline looming for telecommunication operators to sign the re-proposed 5G deal by Digital Nasional Berhad, the stepping down of Izzadin will allow the Ministry of Finance to appoint a friendly candidate who will toe the Ministry line and join Telekom Malaysia in signing the 5G proposal. Finance Minister Datuk Seri Tengku Zafrul had recently said there will be no extension in the deadline after the non-signatory telcos demanded an additional stake in DNB if they were to join the program. The consortium had allegedly requested to raise their interest in DNB to 51% where they can have control of management and dictate terms. But the Ministry was not having any of that, and instead shot a warning adding that the 5G rollout will be scheduled as planned regardless of how many telcos are on board.
What the consortium did not factor in is Izzadin’s contract tenure and Axiata being a GLC, once Axiata and Celcom agree to the 5G deal, the tides will turn against the remaining two non-signatory, leaving Maxis and U Mobile no choice but to take up the offer or be totally left out.
