The Competition Tribunal has confirmed the settlement between South Africa’s part state-owned Telkom and the Competition Commission, which includes the separation of its wholesale and business operations.
The ADSL provider will now also have to conduct annual internal audits to ensure compliance, while a first independent audit will take place within six months.
HumanIPO reported yesterday the Competition Tribunal had heard details of the settlement agreed between the two parties, but had then adjourned to consider whether to accept it or not. The settlement also includes a ZAR200 million (US$20 million) fine for Telkom.
Norman Manoim, Competition Tribunal chairperson, said: “It’s certainly the most impressive consent agreement that I have seen here in my years at the Tribunal and no doubt it took a lot of hard work and many hours of negotiation.”
Sipho Maseko, Telkom Group chief executive officer (CEO), said: “We believe that the conclusion of this agreement is an essential element of our transformation journey.
“It will allow the Company to move beyond legacy complaints and litigation that have been a drag on performance, strategic focus and sound partnerships and which occupied the attention of senior executives for a long period.”
Other provisions of the agreement include a new code of conduct for employees and a series of pricing guarantees.
