South African telecommunications giant Telkom is awaiting clarity following President Cyril Ramaphosa’s declaration that the Special Investigative Unit (SIU) would be launching an investigation into the company regarding contracting and possible maladministration due to the disposals of iWayAfrica, Africa Online Mauritius and Multi-Links Telecommunications.
Telkom said as the SIU investigation is now pending, the company expects to receive further clarity on the scope of the probe and will deal with the it on its merits in the appropriate forum, manner, and time.
“Telkom follows robust corporate governance principles and has done so in executing the Telkom strategy to consolidate its operations in South Africa. The matters date back to as far as 2006 and have been repeatedly reported on in respective Telkom reports. Matters surrounding the Multi-Links Telecommunications
“Limited transaction have been reported on previously and certain related issues have been dealt with in various courts with different jurisdictions in South Africa. Telkom disposed of Telkom International & Africa Online Mauritius jointly grouped under iWayAfrica. The $1 transaction supported the disposal of liabilities amounting to $8-million,” said Telkom.
The president also instructed the SIU to investigate Telkom’s procurement of telegraph services, advisory services in terms of company’s broadband and mobile strategy and payments that were not fair, equitable, transparent or cost-effective, or contrary to applicable legislation or national treasury or Telkom rules.
To get a stake in the lucrative West African market, Telkom ventured into a botched operation in Nigeria through which proved to be disastrous for the company and resulted in a R10 billion loss.
BUSINESS REPORT ONLINE