Bloomberg has reported that Telkom awarded a R91.1 million advisory contract to Bain & Co without following an open bidding process.<\/p>\n
According to Bloomberg<\/a>, documents showed that \u201cthere was no record of a published or archived competitive process that led to the selection of Bain, the Boston-based management consulting firm\u201d.<\/p>\n Telkom CEO Sipho Maseko hired Bain to advise the company on its broadband and mobile strategy.<\/p>\n The report states that Bain was picked within days of the CEO\u2019s arrival at Telkom on April 1, 2013.<\/p>\n According to a previous report by Bloomberg<\/a>, Bain described Telkom as \u201cseverely under-performing\u201d and was in need of a review of its broadband plan, mobile strategy and capital expenditure.<\/p>\n The consultancy firm estimated at the time that the transformation of Telkom’s business would take 18 months (up to October 2014).<\/p>\n The report follows just a day after the Telkom Group’s integrated annual report revealed that the company’s top executives – including Maseko –\u00a0 took home millions in salaries, bonuses and shares amid retrenchments.<\/p>\n The retrenchment process would see almost a third of Telkom’s staff facing the chop in order to save R1 billion per year over the next five years.<\/p>\n Telkom\u2019s executives and prescribed officers took home a combined salary of nearly R60 million for the financial year ended March 2014, with Maseko bagging over R11.7 million of that figure.<\/p>\n The Telkom chief was also granted shares in the company to the value of R5.2 million.<\/p>\n Maseko is also at the centre of a City of Johannesburg metro police (JMPD) investigation into a car licence cloning scandal.<\/p>\n The Star reported on 25 July that Maseko was driving around using his previous vehicle\u2019s number plates, which were legally being used by businessman Mabena Motshoane, who had purchased Maseko\u2019s old Range Rover.<\/p>\n It reported that Maseko incurred traffic fines totalling R30,000, but that these were sent to Motshoane to pay.<\/p>\n Telkom said in response<\/strong><\/a> that it is a matter \u201cthat is personal to Mr Maseko and is in no way related to Telkom\u201d. \u201cAs such, Maseko will deal with it in his personal capacity\u201d.<\/p>\n Telkom executives take home millions<\/a><\/strong><\/p>\n Retrenchments going ahead: Telkom<\/strong><\/a><\/p>\n Telkom dismisses massive job cut claim<\/strong><\/a><\/p>\nMaseko in focus<\/h3>\n
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