Johannesburg, 06 Jul 2011
Local black empowerment technology business Bihati Solutions will ask the Supreme Court of Appeal to overturn a lower court's decision, after it lost a bid to force Telkom to honour a tender.
Bihati has won the right to appeal a January ruling by the North Gauteng High Court, which allowed Telkom to set aside a previous decision to award a tender to six service providers. A court date has not yet been set.
Telkom says, in its latest annual results, the issue relates to a tender that was awarded outside the “validity” period of 120 days. In November 2009, Telkom asked the North Gauteng High Court to set aside the award.
At the same time, says Telkom, Bihati asked the court to overturn the Telkom board decision scrapping the contract. Bihati lost, and then also lost a bid for leave to appeal in the lower court.
'Destroyed'
The tender was for construction services relating to the implementation of wireless and wire-line infrastructure ahead of the 2010 Fifa Soccer World Cup. Bihati's portion of the five-year deal was worth R1.75 billion, out of a total value of R4.5 billion.
Bihati has since won the right to appeal the January decision in the Bloemfontein Supreme Court of Appeal. Bihati CEO Thabiso Tenyane says the appeal paperwork will be lodged on 1 August.
Telkom previously said the tender was conditionally awarded, but the process was put on hold after queries from the public protector and legal letters from unsuccessful bidders.
The Gauteng court found that Telkom was duty-bound to go to court to have the award overturned once it became aware that the process was irregular, because it did not comply with prescribed tender procedures.
However, Tenyane argues that Telkom only had 180 days to go to court to reverse the award after making it in November 2007. He alleges the telco only went to court a year-and-a-half later to have the award set aside.
Tenyane alleges the business has been “destroyed” by the legal battle, and Telkom must honour the original award. Bihati would settle out of court if that is an option, Tenyane adds.
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