Trading Analyst Patrick Mathidi says the Special Investigating Unit’s (SIU) probe into Telkom’s maladministration is a positive sign that the government is willing to tackle corruption.
Telkom this week indicated it had noted President Cyril Ramaphosa’s instructions to the SIU to investigate wide-ranging maladministration at the mobile company and possible employee misconduct-dating as far back as 15 years.
The probe involves the sale of IWayAfrica, Africa Online Mauritius, and Multi-Links Telecommunications Limited.
Telkom’s own investigation flagged possible cases of wrongdoing by two employees in one of these transactions.
Mathidi elaborates on the impact of this probe on investors.
“This has come as a bit of a surprise to the market, given that this is more than 20 years ago but also it could be positive in the sense that the president could be seen as very, very strong in terms of curbing corruption on the corporate side and in government, these investigations can take a while to be concluded. And I think what will be more positive indeed if we are finding people who are being locked in jail for some of these activities which have actually cost the government as the shareholder and the taxpayers a lot of money.”
Transparency International Corruption Perceptions Index has revealed that SA’s fight against corruption has stagnated over the last 10 years: