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Telkom tender questioned

Maredi Telecom and Broadcasting, as well as the Communication Workers Union (CWU), have slammed Telkom for awarding a tender for a point-to-point microwave system to Ericsson and Telsaf Data.

Maredi Telecom and Broadcasting, which bid for the tender, but lost, will contest the deal in the Pretoria High Court. The official court date has not yet been revealed.

In December, Telsaf Data and Ericsson were awarded a Telkom tender to build a point-to-point microwave system for cellphone base stations and broadband wireless access network in a 60:40 power split.

Maredi Telecom and Broadcasting CEO Takashi Utsunomiya claims Telkom violated the Promotion of Administrative Justice Act because it did not follow fair procedure. Utsunomiya confirmed Maredi had filed an application to the Pretoria High Court, but declined to comment on the matter.

According to earlier reports, the microwave system will serve as the backhaul system for cellphone base stations and Telkom's broadband wireless access network. It will also help the company improve its capacity to provide broadband services.

Corruption allegations

Maredi Telecom and Broadcasting has questioned Telkom's business with Ericsson's senior management, claiming proper procedure was not followed.

The CWU has called for an investigation into the deal, claiming Telkom altered documents to influence the tender.

Richard Poulton, CWU chief negotiator, confirmed the union is in possession of documents containing evidence of wrongdoing during the tender procedure. However, he could not comment on the details of those documents. “The CWU promotes transparent corporate governance. In early December, we had evidence showing that the correct tender procedures were not followed and that the tender should not be awarded until a thorough investigation is made.”

Telkom refused to comment, but stated it will issue a statement.

However, it previously refuted “the unfounded allegations concerning claims indicating a flawed procurement process and the alteration of documents in favour of the successful bidder”. It also noted that its “tender processes are extremely stringent”.

Related story:
Telkom slams reports of shady deal

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