Neotel in alleged bribery scandal: report

Neotel is currently embroiled in a scandal involving alleged bribery claims, according to the Mail & Guardian.

The M&G’s Centre for Investigative Journalism , amaBhungane, wrote an exposé detailing how Neotel’s auditors Deloitte blew the whistle on R100 million in questionable payments to a company called Homix.

The payments are allegedly linked to a bid to clinch R2-billion worth of deals from Transnet.

According to the M&G, Deloitte questioned the “commerciality” of the fees, and reported the matter to the Independent Regulatory Board of Auditors (IRBA), on suspicion that an unlawful act or omission had taken place.

Neotel’s board subsequently commissioned a law firm to conduct its own investigations into the matter, and, according to the report, has placed CEO Sunil Joshi and CFO Steven Whiley on special leave.

Neotel told amaBhungane that, to the best of its knowledge, the investigation commissioned by the board made no finding of corruption or illegal activities, while Transnet has denied any involvement.

The revelation comes at a senstive time for Neotel, as the company is in the process of being acquired by Vodacom for R7 billion.

The deal is all but done, with the final hurdle the Competition Tribunal hearings scheduled for the end of 2015.

The acquisition is being opposed by Vodacom’s competitors, Telkom, MTN, and Cell C.

You can read the full report in the Mail & Guardian.

More on Vodacom/Neotel

Commission rules on spectrum in Vodacom/Neotel merger approval

Vodacom-Neotel Icasa approval raises eyebrows

Vodacom-Neotel deal gets approval

Vodacom disappointed by Neotel wait