Vodacom accused of fraud, lying

Vodacom is accused of lying in its awarding of a stake to companies in its R7.5 billion BEE deal to Thebe Investment and Royal Bafokeng Holdings. This is according to a report in the Sunday Independent.

The party accusing Vodacom of misrepresentation is Tiger Consortium Telecommunications, a losing bidder in the BEE deal who is now demanding R100 million from Vodacom in damages.

The report stated that Tiger Consortium Telecommunications said in its court papers that “the selection process was misleading, procedurally flawed and implemented in bad faith”.

It said further that Vodacom “failed to mention a fractional BEE allocation in or during the bidding process of the BEE stake,” the paper reported.

This is in breach of the spirit of the Broad-Based Black Economic Empowerment Act of 2003 and Trade and Industry’s 2007 BEE code of good practice, it said.

Vodacom is reportedly demanding particulars of the misrepresentation and of Tiger’s claim that Vodacom plagiarised the consortium’s funding model.

Tiger Consortium Telecommunications unsuccessfully tried to get its hand on a KPMG forensic investigation report into irregularities at Vodacom.

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Vodacom accused of fraud, lying