Telkom appalled by ‘brand bashing’
Business Report yesterday published an article titled “Telkom contract sparks fraud charges”, alleging that the company “is at the centre of a bitter row for awarding contracts worth millions of rand to a company that allegedly used fraudulent empowerment credentials in its tender bid”.
The article states that “Kwezi Technologies, a black-owned information technology services provider, has accused its former partner, Amdocs South Africa, the local arm of global firm Amdocs Limited, of illegally using Kwezi’s information and that of two other empowerment partners to win Telkom contracts worth R870 million”.
Business Report highlighted that it has not independently verified the amount, “but according to Sipho Mahamba, the chairman of Kwezi Technologies and the Kwezi Group, which also has interests in mining and business links with Australian mining giant Rio Tinto, the amount was for three contracts”.
Telkom not happy
Telkom today released a press statement slating the article, saying that the writer “has deliberately dragged Telkom’s name into this dispute”.
Telkom’s press statement is provided in full below:
A prominent business daily published a lead story yesterday headlined “Contract for Telkom sparks fraud charges”, in which it is claimed that Telkom is at the “centre of a bitter row” over the awarding of multi-million rand contracts.
Telkom dismisses the story and the headline it is published under as an unprofessional and unethical attempt to fabricate a link between the Company and a partnership disagreement between two independent parties who provide services to Telkom. The writer has deliberately dragged Telkom’s name into this dispute, in which Telkom is not involved.
Telkom emphatically points out that the tenders referred to in the article were awarded directly to Asaje, and not individually to any of the organisations that make up its BEE equity shareholding. The Company is dismayed that the daily publication has insisted on naming Telkom in the report, especially when it was explicitly stated to the reporter that the matter under dispute was strictly between Amdocs and Kwezi, and did not involve Telkom in any way.
The story insinuates that Telkom may not have followed strict adherence to due diligence measures in the awarding of a tender to Asaje (Amdocs South Africa Joint Enterprises).
According to the story, one of Asaje’s “former” (sic) partners, Kwezi Technologies, accused Asaje of using their information, and that of two other empowerment partners, to win Telkom contracts.
For the record, Telkom states that the matter was previously raised with Telkom by Mkhabela Huntley Adekeye Inc., representing Kwezi Technologies. Telkom sought clarification from Asaje and subsequently received a letter from Gildenhuys Lessing Malatji Attorneys, representing Asaje, that the matter was a dispute between shareholders.
Telkom exercises caution when dealing with shareholder matters involving suppliers, and the Company does not act as arbitrator in these matters. Legal teams from Kwezi and Asaje were dealing with the matter, and Telkom has consistently maintained that it has no involvement in the matter.
However, Telkom did clarify Asaje’s BEE shareholding and remains satisfied with the response provided by Asaje. Telkom is of the view that, even without taking Kwezi’s shareholding into consideration, Asaje would still have a 35% equity shareholding, which is acceptable to Telkom for the awarding of tenders.
Telkom appalled by ‘brand bashing’ << Comments and views
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