Telkom MD rejects corruption allegations

Pinky Moholi, managing director of Telkom SA, has hit back at allegations of bribery, corruption and nepotism levelled against her in a controversial whistle-blowing report, arguing the allegations are unfounded and unsubstantiated.

The report points to allegations of bribery and corruption regarding a case with radio surveillance company RSSS, as well as allegations of a conflict of interest created by awarding a contract to a company involving Moholi's spouse.

The whistle-blowing report is not supported by any authoritative body, but has been produced and distributed by the Communications Workers Union (CWU), which acknowledges ownership of the document. However, the union says it is not yet willing to stand by the allegations made in the report.

Gallant Roberts, CWU secretary and spokesperson says the union will investigate the matter and state its position at a later stage. When questioned as to why the report was made available to the media prematurely, he explained that it was in the public's best interest to be made aware of the allegations.

Moholi has hit back in her personal capacity: “Some of these allegations have undermined my personal and professional integrity, forcing me to respond publicly.

“I wish to make it clear that, while I am the managing director of Telkom SA, I am making this statement in my personal capacity to refute the allegations made against me personally,” she continues.

Telkom has also slammed the report, saying the document amounts to frivolous personal attacks on certain senior Telkom executives. Moholi has responded to specific allegations made against her in the report.

The CWU report highlights a tender awarded to networking company Hezeki.

“Percy Scholtz and his wife, majority shareholders of Hezeki, have been reported by the media as close personal associates or family members of Reuben September. Phumlani Moholi, husband to Pinky Moholi, managing director, Telkom SA, was allegedly given 7% in Hezeki, by the Scholtz's. Hezeki is one of the six winners in Telkom Network Service (construction) tender,” states the report.

“The board approved the award of the tender in November 2008 and then changed the award decision when another company Bhati filed court papers against Telkom on the tender,” the report alleges.

An investigation into whether Moholi declared this conflict of interest is called for by the report. But Moholi has refuted these claims.

“It is important to note that I was not in the employ of Telkom from 1 December 2005 to 30 April 2009, the period in question. Nevertheless, on joining the company all employees are requested to fill in and continuously update a conflict of interest form,” she explains.

“This was duly done and can be confirmed by the online Telkom compliance form. Mr Moholi had indeed purchased (and was not given) shares in Hezeki, in 2007, and was forced to sell back those shares to the company in April 2009, in light of his spouse's impending employment at Telkom SA.”

Moholi also points to the report's allegation that she was involved in the hiring of a so-called friend from Nedbank, Manelisa Mavuso, without due process.

“The invitation to apply for the SME: consumer position was placed internally in Telkom and simultaneously briefed to a recruitment agency, Spencer Stuart, which sourced Mr Mavuso, a retail marketing veteran [most recently] from Standard Bank Retail. The shortlist included internal and external candidates,” she explains.

“The interviews followed a structured process and were supervised by the group's human resources division. Mr Mavuso was recommended by a panel of three exco members for appointment. Mr Mavuso is not related to me, nor is he a personal friend, and allegations of wrong-doing or nepotism are devoid of any truth,” she continues.

“This allegation is simply a pre-emptive allegation by Mr Thabang Mothelo to avoid the ongoing disciplinary action against him on charges of racism, by throwing aspersions on the chairman of the procedure, Mr Mavuso,” contends Moholi.

Moholi also took the opportunity to refute claims that she failed to take corrective action against allegations of corruption by Selvan Narainsamy, owner of RSSS.

“On the contrary, Telkom authorised the investigation into the RSSS contract as far back as January 2010. This matter was also a subject of Mail & Guardian reports and the company has completed two forensic reports on the allegations.

“The two reports have been handed to the audit and risk committee of the board for further action,” she concludes.