Telkom has confirmed it has suspended its group executive for network provisioning, Marius Mostert, pending the outcome of a disciplinary hearing.
The company did not explain the reasons for Mostert`s suspension. However, there are indications it could be related to a controversial networking tender awarded to a consortium, made up of Telsaf Data and Ericsson, for the supply of microwave communications equipment.
An industry source, who asked to remain anonymous, said the suspension of Mostert comes as a surprise, since he has always been a well respected member of the telecoms community. A Telkom insider also hinted his suspension is a matter of governance and he would hopefully be cleared of any wrongdoing.
According to Telkom`s statement, it is implementing a new structure that is designed to provide focus for the execution of its strategy.
"Consequently, the company deems it necessary to clear recent speculation about a senior executive, Marius Mostert. As a result, Mostert has been suspended pending the outcome of a hearing."
Telkom explains that, as Mostert is a key member of senior management, the company needs to clarify the allegations to "provide focus at a critically important time for Telkom in the midst of an increasingly competitive arena".
The company also confirmed it was a matter of governance more than an attack on Mostert`s character. "This process is vital for both Mostert and the company in the spirit of fairness and transparency, as well as the company`s consistent adherence to Sarbanes-Oxley and King III codes for sound corporate governance."
Maredi Telecoms and Broadcasting made the accusations last year, after it lost during the tender process to the Telsaf/Ericsson consortium.
The company accused Telkom of breaching procurement policies by changing tender documents and awarding a multimillion-rand "microwave" tender to the consortium. The equipment is expected to link Telkom`s backhaul services to radio towers, which the company says will improve its wireless services.
The equipment is critical for Telkom. The company already leases its backhaul to the mobile providers, and is in the process of extending its wireless services in the form of Do3G. Telkom has also had a long-standing relationship with Ericsson, extending as far back as 1996.
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