Cycling sponsorship raises MTN tender questions – report
Despite a potential conflict of interest involving two MTN executives, the mobile operator will extend a tender awarded to another company to manage its call centres, the Sunday Times reported on 20 April 2014.
The report quoted MTN’s head of corporate affairs, Paul Norman, as saying that the operator had discovered the possible conflict thank to new governance systems it had implemented.
There is no suspicion over previous contracts awarded or MTN officials, Norman was quoted as saying.
The matter involves MTN SA boss Zunaid Bulbulia and company executive Eddie Moyce, both of whom reportedly belong to the New Horizons Cycling club.
According to the report, Inter-Active Technologies began sponsoring the club’s professional cycling team in February 2014.
However, Inter-Active has also supplied MTN since 2005 and sponsored the New Horizons Cycling club since 2008, the Sunday Times reported.
The Sunday Times quoted CEO of Inter-Active Technologies, Brendan van Staaden, as saying that their business with MTN has actually declined and now only runs one contact centre for the operator.
MTN was embroiled in a number of scandals last year, some of which involved sponsorships.
In separate events, chief corporate services officer, Robert Madzonga, was suspended, while a number of other MTN executives resigned, including CFO Nazir Patel.
More on MTN’s troubles
MTN manager arrest warrant issued: report
Accusations fly in MTN internal battle: report
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