Telkom’s share price shot up 4% on Thursday after it won a court case to set aside a probe into allegations of corruption and maladministration in its affairs in Nigeria and Mauritius dating back to June 2006. Photo: Tracey Adams/ANA
Telkom’s share price shot up 4% on Thursday after it won a court case to set aside a probe into allegations of corruption and maladministration in its affairs in Nigeria and Mauritius dating back to June 2006.
Telkom released a statement on Thursday, saying that the Pretoria High Court had set aside Proclamation 49 issued by President Cyril Ramaphosa on January 25, 2022 giving the Special Investigative Unit (SIU) the authority to investigate the telecoms firm on allegations of corruption and maladministration in its affairs.
The share price shot up 3.79% to R30.39 in mid-afternoon trade after the statement.
The investigation looked at transactions that took place between June 1, 2006 and January 25, 2022 in possible maladministration in relation to the sale or disposal of iWayAfrica and Africa Online Mauritius; and Multi-Links Telecommunications, and any losses or prejudice suffered by Telkom or the State as a result of such maladministration.
The investigation also extended to contracting for or procurement of telegraph services (telex and telegrams); and advisory services in respect of the broadband and mobile strategy of Telkom. It also authorised the SIU to investigate any unlawful, improper or irregular conduct by employees, officials or agents of Telkom; or any other person or entity, in relation to the allegations being investigated.
Telkom said yesterday that in approaching the courts it had confirmed its commitment to good governance.
Telkom Group CEO Serame Taukobong said: “The allegations in the proclamation had already been addressed by the company through Telkom’s corporate governance processes and the outcomes are of public record.”
Telkom approached the courts because it was of the view that left unchallenged, the proclamation would set a dangerous precedence on the role of the State in private enterprise.
In delivering the judgement, Judge J. Thlapi found the decision to issue the proclamation to be unconstitutional, invalid and of no force or effect.
“Telkom consistently upholds the principles of good corporate governance. It is unfortunate that Telkom needed to approach the courts on this matter and we hope that this judgement brings it to finality,” Taukobong said.
The court ruling is good for Telkom and its shareholders. Its shares have tumbled 28.22% in one year.
The firm has been on a roller-coaster of takeover speculation, which recently saw it abandon talks of a takeover bid with a consortium headed by Sipho Maseko, its former CEO.
Last year telecoms giant MTN walked away from talks to buy Telkom SA in a deal that would have created South Africa’s largest mobile phone operator.
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