Telkom accused of tender irregularity

Telkom has been accused of irregularly awarding a R755-million security tender, the Sunday Independent reported.

Citing sources in Telkom, the report stated that two senior managers allegedly used underhanded tactics to ensure their preferred companies were awarded the contract.

It is alleged the two managers bypassed procurement processes to award the bulk of the contract to two companies, which the sources said do not meet the requirements of the tender.

According to the report, documents regarding the tender reveal that Telkom used the services of KPMG in 2016 to identify service providers which would be suitable to bid in a closed tender for physical guarding and network protection services.

Among the criteria Telkom provided to KPMG included: industry overview, supply market analysis, competitor key client overview, best practice contracting models, and SWOT analysis on key suppliers.

In August 2016, KPMG identified 21 service providers that Telkom could invite to tender.

Telkom’s subject matter evaluation team reviewed the recommendations, and seven companies were found to be suitable.

Neither of the two implicated companies were on this list.

Tender process

The two Telkom managers accused of manipulating the tender process added three companies not included on the approved list, based on their industry knowledge.

Ultimately, nine companies were then invited to bid on the contract.

The Telkom subject matter evaluation team then shortlisted three companies, before the two implicated companies were awarded the bulk of the contract.

Telkom declined to comment to the Sunday Independent on the matter, as it is currently before the North Gauteng High Court in Pretoria.

It did confirm that it acted in line with the law, however, and that the case is expected to be heard in early 2019.

Telkom comment

Telkom told MyBroadband the issue relates to matters that are the subject of litigation, pending before the High Court.

“Telkom is therefore not currently in a position to respond on the matter,” it said.

“We can confirm that Telkom has acted in line with all applicable legal prescripts and are confident that the High Court will find in its favour.”

“The issues currently before the High Court also formed the subject of court proceedings against Telkom in 2004 (Labour Court case JS 47/04). That case was dismissed.”

The full report is in the Sunday Independent, 25 March 2018.

Now read: Telkom raises R1 billion in debt issue

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Telkom accused of tender irregularity