Telkom defends tender actions

More accusations surfaced this week attacking Telkom`s tender processes, this time over telex machines supplied to the post office.

The company has come under fire by 51% black-owned Phutuma Networks, which says it has been working towards winning the alleged R1.5 billion tender since 2003. According to documentation provided by Phutuma founder and director, Ed Scott, the tender was officially opened in 2005 and was later pulled, only to be offered two years later as an outsourcing project.

Telkom has a contract to supply telex machines to the post office until 2015. Phutuma has gone on to accuse Telkom of rigging the process, allowing a competing bidder to work on the project without tender and entrench itself in the business.

This is the second recent allegation slamming Telkom`s tender process. In December, Maredi Telecom and Broadcasting accused Telkom`s senior executives of shady dealings with Ericsson and Telsaf Data.

The tender was awarded to the companies to build a point-to-point microwave system for cellphone base stations and a broadband wireless access network. Maredi`s stance revealed that Ericsson did not meet the tender requirements, because it failed one of the technology trial runs, a fact not disputed by the international technology business.

Maredi has since filed a court application at the Pretoria High Court in a bid to prevent Ericsson and Telsaf Data running with the multimillion-rand deal.

In a media briefing yesterday around the scandals at Telkom and the company`s future, newly appointed group CFO at Telkom Peter Nelson explained it could not comment directly on the Maredi accusations, because the matter was now with the courts.

However, the company does not seem concerned about the legal action. "We will accept any verdict that is handed out by the court," he said.

The telco explained that all processes are now being passed across Nelson`s desk and would be closely scrutinised.

Nelson is not pleased by the public spectacle the two tender accusations have brought to Telkom, since the company is in the process of a controversial restructuring process, which has seen at least one executive pink-slipped.

He slammed media reports on the Phutuma tender allegations, saying it is not a news story. Nelson said a complaint from Phutuma passed across his desk early in the year, and all processes around the telex tender have been halted for investigation.

"The telex tender has not been awarded and will not be until all queries around the process have been fully investigated." He also noted that the cost of the tender was no where near R1.5 billion, and was closer to R10 million over the five-year contract period.

Telkom explained that it would tighten processes if any irregularities were found.