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TELKOM SOUTH AFRICA WINS APPEAL OVER IMPLEMENTATION OF TENDER

     (The following press release from Telkom South Africa Ltd. was received by 
e-mail. The sender verified the statement.) 
Supreme Court of Appeal rules in Telkom’s favour 
The matter between ZTE Mzansi and Telkom was concluded today in favour of 
Telkom. 
Telkom’s Procurement Policy and process of applying it was upheld when the 
Supreme Court of Appeal today set aside the North Gauteng High Court’s interim 
interdict against the Company. The appeal was upheld with costs. 
In March 2012, Telkom was interdicted from implementing the tender for Multi 
Services Access Node (“MSAN”) provision and concluding any service level 
agreement with the successful bidders. This was pending the outcome of an 
arbitration    between Telkom and ZTE Mzansi. 
Telkom Group CEO Nombulelo Moholi says: “We had no doubt that Telkom’s 
Procurement Policy and Procedures would not be found wanting. Telkom is pleased 
that the deployment of the MSAN and the rollout of the higher speed broadband 
project has overcome a potential obstacle and can now continue unabated.” 
During July 2011, Telkom published a tender (RFP 0328/2011) for the provision 
of MSANs. ZTE Mzansi had submitted a bid but was not shortlisted because it 
failed to meet certain critical technical criteria during the evaluation 
process. 
Telkom awarded the RFP to Huawei and Alcatel-Lucent Technologies on 21 November 
2011, after having followed a fair, open, transparent and competitive 
procurement process, which was also validated by external auditors. Telkom 
upholds the highest standard of governance in its procurement processes. 
During January 2012, ZTE served an application upon Telkom seeking to restrain 
the Company from implementing the tender in terms of an interim interdict. 
Telkom and Alcatel–Lucent opposed the application. 
In May 2012, the North Gauteng High Court granted Telkom leave to appeal to the 
Supreme Court of Appeal against the interdict. The Supreme Court of Appeal held 
that it would be an unbusinesslike construction and absurd if Telkom was 
obliged to resolve disputes with multiple bidders by arbitration with varying 
awards before it could safely implement an award. In addition the Court 
confirmed that no contractual relationship is created when a bidder submits a 
tender in response to an invitation by Telkom to do so . 
The MSAN units delivered the long-awaited higher speed broadband and fibre to 
the curb and/or premises. Telkom on 4 March launched DSL up to 20Mbps and DSL 
up to 40Mpbs options to the market.
ENDS
 
 
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