MTN and the SA Post Office may head to court over a R900-million tender that was awarded to Telkom, according to a report in the City Press.
The report stated that the Post Office tender was set to be awarded to MTN to upgrade the state-owned company’s network facilities – and was advertised in 2016.
Telkom reportedly lost out due to high pricing, but the Post Office cancelled the tender in February 2017.
When the Post Office was awarded the contract to handle South Africa’s social grant payments, however, it awarded a network upgrade contract to Telkom – which was said to include services in the cancelled tender.
MTN then contacted Treasury about the deal, and Post Office CEO Mark Barnes – but was not replied to.
MTN told the City Press that the company did not receive a reason for the cancellation of the contract last year, but had not made a final decision on any legal action.
“MTN is waiting for the requested information so that it can make an informed decision,” it said.
The Black Business Council also expressed concern about the Post Office’s decision, with it stating “there are so many unexplainable issues at SAPO, including the R900-million network tender unfairly awarded to Telkom”.
Telkom did not provide comment to questions in the report.
Post Office shambles
The Post Office has had a poor performance in 2018 so far, with its online services – including its website – suffering extended downtime this year.
Tests by MyBroadband have also shown that the Post Office is unable to conduct even the most basic of tasks, delivering letters on time.
Many South Africans and ecommerce companies have stopped using the SA Post Office as a result.