(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’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
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.
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