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Debis loses out on Telkom deal

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 24 Apr 2015
Telkom will continue to negotiate the best possible deals as it proceeds with its turnaround strategy.
Telkom will continue to negotiate the best possible deals as it proceeds with its turnaround strategy.

Telkom's new contract with Bidvest, to manage its fleet of thousands of vehicles, can now be implemented after a high court ruled the incumbent provider, Debis Fleet Management, must hand over the deal.

According to media reports, Debis won a deal in 2000 to supply Telkom with 6 000 vehicles for its field technicians. That deal was reportedly renewed in 2008, 2012 and 2013.

However, Debis subsequently lost the deal to rival Bidvest after Telkom issued a tender in the middle of last year, and then approached the North Gauteng High Court in a bid to hang onto the contract, notes the report.

Telkom spokesperson Jacqui O'Sullivan notes the court today ordered Debis to provide Telkom with its vehicles, as per the contract, throughout the lead out phase and also do its best to ensure a seamless service to Telkom during this period.

"Debis has also been ordered to collaborate with Bidvest, our new fleet management service provider, on all reasonable transition requests such as the provision of relevant information."

O'Sullivan notes costs were awarded against Debis.

"This judgement is a complete vindication of Telkom's view that the existing contract was entirely clear on the 'lead-out' obligations required from Debis."

O'Sullivan adds the company is disappointed, after such a long partnership with Debis, that it would choose to adopt "this approach" when Telkom's contract with it came to an end.

However, speaking to Fin24, Debis spokesperson Jeanette Clark said the court was approached because it could not "obtain clarity regarding certain important topics relating to the expiry of the agreement".

Telkom, which is moving ahead with a turnaround strategy that will see several Telkom Direct stores closed and other services, such as its call centre, outsourced, adds this strategy is "predicated on the company taking robust and purposeful actions to improve the experience of our customers while also delivering sustainable and long-term growth".

O'Sullivan says, with this in mind, it will continue to negotiate the best possible commercial agreements for its business and its customers. "We will not be swayed by the kind of legal threats and strong-arm tactics that we were subjected to in this matter.

"The judgement was emphatic in its view that Telkom acted within the parameters of the mutually-agreed contract. We are pleased to put this matter to rest and will continue to ensure a seamless transition to our new fleet management partner, Bidvest."

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