A VEIL of secrecy has shrouded the reasons for the resignation of Nombulelo Moholi, chief executive of embattled Telkom.

While the Communications Workers Union said it would only comment on the matter after conducting an investigation, trade union Solidarity expressed disappointment at Moholi's departure.

Solidarity's spokesman Marius Croucamp and a source who wanted to remain anonymous alleged that Moholi and Communications Minister Dina Pule were not on speaking terms since the KT deal with theKoreans fell through.

Telkom has denied this.

"There is no truth in that. Telkom group chief executive has always maintained a professional, cordial and friendly relationship with Minister Dina Pule," Telkom said.

The statement further said Moholi in her address to staff members yesterday never cited any reasons for her departure.

Relations between Telkom and the government soured when the Department of Communications blocked aR3.3-billion deal, which Telkom's management was supporting.

"I think the contributing factors include the fiasco at the board meeting last week, which resulted in Lazarus Zim leaving his chairmanship," saidCroucamp.

Department of Communications spokesman Siya Qoza declined to comment on the resignation.

Telkom yesterday released a statement announcing the resignation, saying Moholi has notified the company of her intention to step down before the end of her contract period.

"She has given the board the requisite six months notice in this regard," said the statement.

Furthermore, Neo Phakama Dongwana has informed the board of her resignation as director effective November 2.