December 10 2010 at 05:49am
By Asha Speckman
Independent Newspapers
The fallout from allegations of corporate governance breaches at Telkom escalated yesterday as the telecoms group disclosed that the SAPS and the National Prosecuting Authority (NPA) were conducting criminal investigations into certain activities at Multi-Links, Telkom’s loss-making Nigerian unit.
The news of the probes caps a tumultuous week for Telkom, which finds itself on the defensive and trying to contain the damage stemming from an explosive 30-plus page whistle-blowing report that the Communications Workers Union (CWU) sent to the firm last week.
Telkom said in a statement it was aware that memorandums containing a wide range of ”unsubstantiated” statements relating to the alleged lack of corporate governance at Telkom were circulated to the media and various parties.
The CWU document, in Business Report’s possession, alleges serious violations of Telkom’s corporate governance processes. It also alleges corruption and other violations by various individuals, including some that have left the group.
The document names among its recipients the JSE, the office of the public protector, Parliament and the Minister of Finance.
Among the allegations are that several large contracts were not reviewed and approved by Telkom’s legal services department in line with its governing structures and procurement processes, and that Multi-Links’s then chief executive and chief financial officer knowingly allowed payments of the contracts to be processed.
Telkom said its board believed that the release of the memorandums was designed to distract it from its ongoing investigations. It also said a number of matters contained in the memorandums were already known to the company and were in various stages of inquiry.
Forensic auditors at Ernst & Young were tasked by the Telkom board to perform an investigation into many aspects of Multi-Links and this had culminated in criminal and disciplinary processes being initiated, the company said.
A Telkom spokesman would not say when the Ernst & Young investigation began.
“The findings of the Ernst & Young investigations have been handed to the SAPS and the NPA for consideration. The (latter) have subsequently instituted criminal investigations into certain activities at Multi-Links,” Telkom said.
It added that it was not in a position to provide further details of the criminal investigations. An internal disciplinary process had also been instituted against various Telkom employees for failing to comply with company policies and for mismanagement, Telkom said.
Colonel Vish Naidoo, a spokesman for the SAPS, confirmed that the police’s Serious Economic Offences crime unit was investigating but he declined to give details when contacted on Wednesday.
“At this stage I can only confirm that there is an investigation relating to alleged corruption. The investigation is not against any individual and at this early stage of the (inquiry) it would be premature to implicate any person or persons,” Naidoo said.
Telkom’s audit and risk committee met on Wednesday to formulate a response to mounting scrutiny.
The chairman of the committee, Sibusiso Luthuli, said that apart from the issues already examined by Ernst & Young and other investigations, many of the statements in the recent dossiers were frivolous personal attacks on certain senior Telkom executives.
“However, the board takes all allegations seriously and will investigate where appropriate,” said Luthuli. -
The Star
Comments by Sonny
Why can't the ANC keeps their fingers out of the tills?
All the parastatals are the same - CORRUPT!
Now the SA Banks are following suit!
RECYCLING GOODS AT TELKOM
Telephone cables are stolen by thieves who sell them to scrap dealers, and ‘fencers!’
The cables are shed along the way of their protective plastic/rubber covering by burning it off.
Then the copper is exported in bulk to far off shores like China.
Copper cables have recently been replaced by fibre optic cables.
Copperless optic cables were thought to be useless to criminals to steal.
It has now emerged that fibre optic cables are broken down and the Kevlar is used to make bullet proof vests for police and security industries!
One good thing comes out of all this theft!
Affirmative action leaves nothing to rot, this includes your possession.
All gets recycled for profit of the previously disadvantaged!
No wonder the ruling party is so strong, financially!
God bless the President and his inner circle!
CRIME IS NOT A THRIVING INDUSTRY IN SOUTH AFRICA!
Author Unknown According to legend he suffers from PTSD and was institutionalized after writing this article…….
This is how they justify corruption......."The chairman of the committee, Sibusiso Luthuli, said that apart from the issues already examined by Ernst & Young and other investigations, many of the statements in the recent dossiers were frivolous personal attacks on certain senior Telkom executives"..............
The sons and grandsons for their heroes have spoken!
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