Telkom Media Statement
Telkom, once again, finds it necessary to clarify matters raised in two reports by a Sunday newspaper. Pursuant to the same publication's initial article in early December 2008 (which were clarified and corrected at the time), further unfounded allegations and inaccuracies in respect of a Telkom tender for the provision of a critical system to supply end-to-end solutions for point-to-point split mount radio equipment, have again surfaced.
Telkom, once again, refutes the insinuation that any close business relationship exists between its CEO and management at Ericsson and that this could have influenced the outcome of the tender.
Furthermore, the Company is in constant consultation with organised labour and, with regard to the allegation that the Communication Worker's Union (CWU) has called "for a probe into alleged corruption", the agreement with CWU is that Telkom would manage this issue internally. The Company's CEO has taken the initiative to ensure due process and compliance to all governance matters. KPMG has been appointed to investigate internal processes.
Telkom also confirms that a court application was received from the unsuccessful bidder, Maredi Telecommunications and Broadcasting (Pty) Ltd, to review and set aside the awarding of the tender.
Telkom re-iterates that its tender processes are extremely stringent and that the Company boasts a proud record of compliance to King 2 and Sarbanes-Oxley governance procedures.
To ensure the continuation of compliance with governance procedures as well as fairness and transparency with regard to current and future tender processes, Telkom's CEO (and not the Board) has appointed KPMG to independently audit certain aspects of the Company's procurement processes.
With regard to the sale of part of Telkom's stake in Telkom Media, the Company will be able to make a final announcement in this regard by the end of this month.