Local black empowerment IT group Safika Technologies Holdings says the cancellation of a multi-million rand Telkom contract will not affect the company.
In 1999, Telkom awarded a contract to US telecommunication company Telcordia to supply an automated end-to-end solution for a service activation and assurance system. Telcordia then subcontracted Safika as a local representative. However, Telkom terminated this contract earlier this year.
In an official statement a Telkom spokesperson says: "Telkom terminated this contract earlier this year as Telkom was not satisfied with the services and products supplied by Telcordia in the sense that these did not meet Telkom's business requirements."
Safika's Thami Sibiya declined to disclose the value of the deal, but said it was worth "many millions of rands". He hastened to add, however, that the cancellation of the contract would not affect the business of Safika.
In a press release published on ITWeb in October last year Safika said it was expecting revenue of R80 million for the 2001 financial year based on the growth patterns it had experienced in its previous financial years as well as future projections.
"I can't release more information than to confirm the deal has been cancelled, but Safika is moving strongly ahead, we have just signed two new deals and we are looking solid," said Sibiya.
He also denied that Safika was rationalising the business but confirmed some contractors had been let go.
After cancelling the Telcordia deal, Telkom has not awarded the contract to any other one supplier but says it has "adopted the role of a general contractor".
Telkom concluded its statement saying: "The end-to-end solution is an internal Telkom initiative to help improve customer satisfaction, and it remains Telkom's prerogative to decide on suppliers to meet our business needs and objectives."
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