{"id":644133,"date":"2026-05-01T10:59:45","date_gmt":"2026-05-01T08:59:45","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=644133"},"modified":"2026-05-01T10:59:48","modified_gmt":"2026-05-01T08:59:48","slug":"south-african-ict-firm-in-r100-million-battle-against-one-of-the-largest-companies-in-the-world","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/software\/644133-south-african-ict-firm-in-r100-million-battle-against-one-of-the-largest-companies-in-the-world.html","title":{"rendered":"South African ICT firm in R100-million battle against one of the largest companies in the world"},"content":{"rendered":"\n

South African ICT solutions provider Time Quantum is seeking damages of over R100 million in a legal dispute with American technology conglomerate Oracle.<\/p>\n\n\n\n

Oracle is a Fortune 500 company and ranked among the 25 largest companies in the world by market capitalisation in April 2026.<\/p>\n\n\n\n

The dispute originated in 2014 and concerns a 20-year contract with the state-owned Postbank, the banking division of the South African Post Office (SAPO).<\/p>\n\n\n\n

Rams Mabote, an advisor for Time Quantum, provided feedback to MyBroadband’s questions about the legal battle between the two companies.<\/p>\n\n\n\n

In 1994, Time Quantum entered into an arrangement to provide Indian software company i-Flex’s Flexcube banking solution to Postbank.<\/p>\n\n\n\n

Time Quantum took over the software implementation from the previous contractor, STRATUS, acquiring their share of the interest and annual maintenance revenue.<\/p>\n\n\n\n

Mabote said the original contract was not a normal reseller arrangement, but that Time Quantum had obtained commercial rights through investment and project rescue in Postbank.<\/p>\n\n\n\n

Oracle acquired i-Flex in 2005, effectively taking over their role as the Original Equipment Manufacturer (OEM) in the contract with Time Quantum.<\/p>\n\n\n\n

While Oracle initially respected the terms of the original agreement between Postbank and Time Quantum, Mabote said this began to break down around 2013.<\/p>\n\n\n\n

“The dispute crystallised around the 2013 upgrade from Flexcube CR to Flexcube UBS,” Mabote said. “SAPO placed the upgrade order through Time Quantum, who in turn placed the order with Oracle.”<\/p>\n\n\n\n

“Oracle later relied on that order document to argue that SAPO could renew technical support directly with Oracle after a ‘one-time right’ granted to Time Quantum.”<\/p>\n\n\n\n

In 2014, Time Quantum became aware that SAPO had approached Oracle directly for maintenance services, which Time Quantum said infringed the terms of the original licence agreement.<\/p>\n\n\n\n

Time Quantum raised the issue directly with Oracle in October 2014, and Oracle appointed their Head of Channel Partners at the time, Stefan Diedericks, to investigate.<\/p>\n\n\n\n

Diedericks, an advocate, found that an error had been made in the order document and said Time Quantum should work together with Oracle’s Financial Services Global Business Unit to solve the issue.<\/p>\n\n\n\n

According to Mabote, however, a Senior Director for Strategic Alliances EMEA at Oracle overruled this, saying Oracle could indeed renew support with SAPO directly without the need for Time Quantum.<\/p>\n\n\n\n

“Time Quantum has consistently stated that it was not opposed to Oracle and SAPO moving to a different engagement model,” Mabote said.<\/p>\n\n\n\n

“What Time Quantum objected to was a unilateral shift that allegedly removed Time Quantum’s commercial rights without a negotiated settlement.”<\/p>\n\n\n\n

The legal case against Oracle<\/h2>\n\n\n\n
\"\"
Time Quantum advisor Rams Mabote<\/figcaption><\/figure>\n\n\n\n

In March 2018, Time Quantum issued a civil claim against Oracle and SAPO in the High Court of Johannesburg, originally seeking over R60 million in damages.<\/p>\n\n\n\n

Time Quantum alleged that Oracle and Postbank had breached the original licence agreements through a direct engagement over Flexcube licensing and maintenance, without Time Quantum’s involvement.<\/p>\n\n\n\n

“The documents in our possession refer specifically to annual maintenance pricing of approximately R21 million around the 2015\/16 period, the time at which Time Quantum was circumvented,” Mabote said.<\/p>\n\n\n\n

“Time Quantum’s contention is that its share of the annual maintenance at 50% of this amount is due and payable from 2015\/16 to date.”<\/p>\n\n\n\n

Time Quantum said these damages now amount to over R100 million, alleging that Oracle and SAPO had permanently locked the company out of a long-term revenue stream.<\/p>\n\n\n\n

The company also said it had effectively been deprived of a return on investment, which it had earned through years of investment and support in Postbank’s implementation of Flexcube.<\/p>\n\n\n\n

Sunday World reported<\/a> that Time Quantum had called on the Department of Communications and Digital Technologies (DCDT) to intervene in the matter.<\/p>\n\n\n\n

This call for intervention came shortly after Postbank was awarded a financial services provider licence on 17 March 2026.<\/p>\n\n\n\n

However, the department said it does not involve itself in procurement-related matters involving entities which report directly to it, including SAPO and Postbank.<\/p>\n\n\n\n

“While the Department is correct not to interfere in ordinary procurement decisions, this matter goes beyond procurement,” Mabote said.<\/p>\n\n\n\n

“It raises questions of governance, contractual integrity, SOE accountability, transformation, and fair dealing with local suppliers.”<\/p>\n\n\n\n

Mabote said it also raised questions about whether a public entity could benefit from a direct arrangement that allegedly undermined existing contractual rights.<\/p>\n\n\n\n

While Mabote said Time Quantum did not expect the department to decide the legal outcome of the dispute, they must investigate SAPO’s conduct to ensure proper governance procedures were followed.<\/p>\n\n\n\n

MyBroadband contacted Oracle, Postbank, and the DCDT for further comment, but they had not provided feedback by the time of publication.<\/p>\n","protected":false},"excerpt":{"rendered":"

South African ICT firm Time Quantum is seeking over R100 million in damages in a legal dispute with Oracle over a contract with the South African Post Office.<\/p>\n","protected":false},"author":341215,"featured_media":644142,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[66538,104880,104879,3372,3888,104881,22355,104878],"class_list":["post-644133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-software","tag-department-of-communications-and-digital-technologies-dcdt","tag-flexcube","tag-i-flex","tag-oracle","tag-postbank","tag-rams-mabote","tag-south-african-post-office-sapo","tag-time-quantum"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/644133"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341215"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=644133"}],"version-history":[{"count":7,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/644133\/revisions"}],"predecessor-version":[{"id":644429,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/644133\/revisions\/644429"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/644142"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=644133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=644133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=644133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}