A ruling is awaited from the Supreme Court of Appeal (SCA) after it heard an appeal by the Special Investigating Unit (SIU) and president Cyril Ramaphosa against a 2023 High Court judgement that blocked a probe into Telkom's disposal of several African assets.
Telkom successfully challenged the proclamation in the High Court in 2023, with the court finding the company was not a state institution and therefore fell outside the SIU's investigative powers.
The SIU appealed the ruling, which blocked a probe into alleged maladministration when Telkom sold its iWayAfrica, Africa Online Mauritius and Multi-Links Telecoms entities at a loss as part of its exit from its non-SA businesses in Africa.
The SIU argued in 2023 it had decided to appeal because this would clarify whether entities such as Telkom fall within its investigative mandate. When announcing its appeal, the unit said the High Court's interpretation could set a legal precedent on which institutions it is able to investigate.
“The SIU is of the opinion that there is reason for an appeal. The court needs to give a fuller picture of what constitutes a state institution, as this can set a legal precedent on which institutions the SIU can exercise its powers,” the SIU said. “If this is not clarified, it may create an unwelcome precedent that some public institutions may inadvertently be shielded from investigation by the SIU.”
Although Telkom is listed on the JSE, the South African government directly owns 40.5% of the company, while the state-owned Public Investment Corporation holds a further 10.25%, giving the state effective control of more than half its shares.
President Cyril Ramapohosa’s 2022 proclamation authorised the SIU to “use all its legislative powers to subpoena bank statements and cellphone records, search and seize evidence, and interrogate witnesses under oath in an effort to hold those responsible to account for their actions,” a gov.za statement says.
Sold at a loss
Telkom sold its CDMA business unit Multi-Links to HIP Oils in 2011 at a large loss after a long legal battle. It also sold the iWayAfrica and Africa Online Mauritius assetsthrough a private sale to Gondwana International Networks.
iWayAfrica was formed as the result of the amalgamation of MWeb Africa and Africa Online in 2007, when MWeb Africa was purchased by Telkom and operated in eight countries in Africa. It provided terrestrial wireless and VSAT services to business and residential markets, as well as via its channel partners in many other countries on the continent.
While iWayAfrica and Africa Online generated revenue from operations across the continent, Telkom's broader African expansion strategy failed to produce the expected returns. The company's Nigerian investment, Multi-Links Telecoms, became particularly costly, and Telkom ultimately exited all three businesses as it refocused on South Africa.
In its 2025 annual report, Telkom said: “Telkom follows robust corporate governance principles and has done so in executing the Telkom strategy to consolidate its operations in South Africa. The aforementioned matters date back as far as 2006 and most of them have been repeatedly reported on in respective Telkom reports.”
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