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The Pretoria High Court has set aside a proclamation issued by President Cyril Ramaphosa last year that gave the Special Investigative Unit (SIU) authority to investigate Telkom.
In a statement issued on Thursday, Telkom said it approached the courts because it believes that, left unchallenged, the proclamation would set a dangerous precedent on the state’s role in private enterprise.
“The allegations in the proclamation had already been addressed by the company through Telkom’s corporate governance processes and the outcomes are of public record,” said Telkom CEO Serame Taukobong.
Judge J Thlapi ruled the proclamation was unconstitutional, invalid, and of no force or effect.
“It is unfortunate that Telkom needed to approach the courts on this matter and we hope that this judgement brings it to finality,” stated Taukobong.
Ramaphosa issued the directive on 25 January 2022, ordering the SIU to investigate allegations of maladministration and misconduct at Telkom.
The president referred several dodgy deals to the anti-corruption watchdog, including Telkom’s sale of its Nigerian Multi-Links operation in 2011, and the disposal of iWayAfrica and Africa Online Mauritius in 2013.
Late communications minister Roy Padayachie revealed in July 2011 that Telkom made a R7 billion loss on Multi-Links after acquiring the business in March 2007.
Ramaphosa also directed the SIU to investigate allegations of unauthorised, irregular, or fruitless and wasteful expenditure relating to telex and telegram services.
The SIU was also to investigate contracts relating to advisory services concerning Telkom’s broadband and mobile strategy.
These advisory services may refer to the billions Telkom reportedly spent on consultants over the years, including a R200 million contract with Bain & Company, and a separate contract with consulting firm A.T. Kearney.
When questioned about these contracts at the time, Telkom defended them, saying it received value for its money.
Telkom said the catalyst for the SIU’s recommendation to Ramaphosa that it should investigate matters dating back 15 years was Phutuma Networks executive chair and founder Edward Scott.
The battle between Phutuma Networks and Telkom dates back to at least 2009 and involves the telegraph services Ramaphosa directed the SIU to investigate.
Telkom previously said that it had conducted its own investigation, which flagged possible cases of wrongdoing by two employees in one of these transactions.
It was declared in terms of the Prevention and Combatting of Corrupt Activities Act, Telkom said.
“Telkom issued civil summons against an employee with an eye to recovering losses amounting to $5 million relating to activities incidental to the transaction,” it added.
“As the matter is the subject of a criminal and civil nature, Telkom will deal with the case on its merits in the appropriate forum, in the appropriate manner, at the appropriate time.”
source:Telkom wins case against Ramaphosa to block investigation into shady deals (mybroadband.co.za)
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