Telkom, a South African wireline and wireless telecommunications provider, has won a court case against Matamela Cyril Ramaphosa, the president of South Africa.
Last year, the president issued Proclamation 49, giving the Special Investigative Unit (SIU) authority to investigate allegations of misconduct by Telkom company and some of its employees. The allegations were about some transactions and disposal of some entities by Telkom.
The High Court declared the allegations and Proclamation “unconstitutional, invalid and of no force.” Telkom has welcomed the Pretoria High Court’s decision.
In delivering the judgement, Judge Thlapi set aside a proclamation by Cyril Ramaphosa to investigate the mobile network operator. The North Gauteng High Court in Pretoria ordered SIU to return to Telkom all documents it obtained in pursuit of the investigation.
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Serame Taukobong, Group Chief Executive Officer of Telkom, reportedly 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.” He further noted, “Telkom consistently upholds the principles of good corporate governance. It is unfortunate that Telkom needed to approach the courts on this matter.”
Reportedly, Telkom maintained that the South African president lacked the necessary details to warrant a SIU inquiry over the company’s matter. The company said that the “vague allegations formulated in the widest possible terms.” The company alleged that the president had acted irrationally and arbitrarily.
Earlier this month, Telkom rejected an offer led by its former CEO Sipho Maseko and the South African Government Employees Pension Fund to buy a majority stake in the country’s third biggest telecoms company, sending its shares down 7 per cent.
The company said, “The Indicative Proposal is not in the best interest of shareholders.”
