Fixed-line utility Telkom has refused to confirm whether its chairman and CEO have been summoned to testify before an enquiry under Section 417 of the Companies Act, regarding the awarding of a tender for the manufacture of telephone cards.
The tender, which is reported to have been worth R600 million, was awarded to Gijima Africa Smart in 2001.
Media reports indicate Telkom chairman Nomasizi Mtshotshisa and CEO Papi Molotsane have been summoned to testify before commissioner Arnold Subel on the matter on 10 July. Subel is overseeing the liquidation of Applied Card Technologies (ACT).
Mandla Nqcobo, head of corporate affairs, and Thapelo Petje, former head of procurement, are also said to have been summoned to testify on the matter.
The issue of how Telkom`s tender was awarded will form part of Subel`s investigation into the affairs of ACT, a smart card manufacturer that was placed under provisional liquidation in 2001.
John Sterenborg, former co-owner of ACT, requested the investigation into how the tender was awarded, alleging the contract was diverted to Gijima Africa Smart. To prove this, he suggested that Subel request documents related to the tender.
However, Gijima Africa Smart executive deputy chairman Robert Gumede, who was a 26% shareholder in ACT at the time, initially asked the Johannesburg High Court to set aside Subel`s summons, citing a constitutional right to privacy. However, the court dismissed the application.
Sterenborg could not be reached for comment at the time of publication.
Telkom declined to comment, noting that it does not deal with issues of this nature in the media.
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