Union demands Telkom corruption probe

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 12 Apr 2007

Solidarity insists government probe Telkom, even though it has no substantive evidence of corruption, says the union's deputy secretary-general Dirk Hermann.

Earlier this week, Solidarity issued a press statement calling on the Department of Communications to start such a probe into Telkom, following last week's sudden departure of the telecommunication utility's CEO, Papi Molotsane.

Yesterday, the union issued a second statement that quoted an article from business weekly Financial Mail's IT blog site, indicating something untoward had occurred with Telkom's $280 million purchase of Nigerian telecommunications operator Multi-Link, in March.

The article alleges Telkom had paid up to $20 million too much for Multi-Link and this was a contributing factor to Molotsane's departure.

Another rumour circulating is that Molotsane had instituted an investigation into Telkom's procurement practices.

Hermann says the union has only received unsubstantiated reports from its 3 300 members who work at Telkom. "Nothing substantive has been received."

The SA Communication Workers Union, which claims to have 9 000 members at Telkom, says it has received no reports or allegations of corruption at Telkom.

In a separate statement, it says it is concerned about the management and perception crises that have beset Telkom with the resignation of so many key people.

"The unceremonious departure of Telkom CEO Papi Molotsane confirms our major concern about the governance and leadership of the key institutions within the economy," the union says.

Telkom is unable to comment as it is in a closed period ahead of the release of its financial results next month.