Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

      Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

      19 February 2026
      MeerKAT detects most powerful natural radio laser ever observed

      MeerKAT detects most powerful natural radio laser ever observed

      19 February 2026
      How AI is rewriting the rules of consulting - Mark Allderman

      How AI is rewriting the rules of consulting

      19 February 2026
      Crackdown on students gambling away Nsfas money online

      Crackdown on students gambling away Nsfas money online

      19 February 2026
      Meta may launch AI-powered smartwatch in 2026

      Meta may launch AI-powered smartwatch in 2026

      19 February 2026
    • World
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 February 2026
      Musk hits brakes on Mars mission

      Musk hits brakes on Mars mission

      9 February 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      A million reasons monopolies don't work - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Telecoms » Telkom caught up in police deal scandal

    Telkom caught up in police deal scandal

    By Agency Staff4 October 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Telkom is billing the national police service for two contracts that cover virtually the same work, five people familiar with the situation have said.

    The Pretoria-based company secured a contract to work on the service’s switching centres, which allow the South African Police Service to communicate with staff and stations across the country, and started work in mid-2016 using Netxcom ICT Solutions as a subcontractor, the people said, declining to be identified because they aren’t authorised to speak to the press.

    While Netxcom is continuing to do the work, Telkom has withheld some of the payments it owes to the subcontractor even though it has continued to receive money from the police, the people said.

    Sita was not consulted by the police on this contract

    It is now in a legal dispute with Netxcom, which has sued to get the money it believes it is owed. Telkom said it did withhold some payments to subcontractors because of contractual “inadequacies” — without naming Netxcom.

    A few months after Netxcom started work, Telkom signed a separate R497-million contract, which will run for five years, with the police to do the same work on the same switching centres with a few minor additions. That agreement includes another subcontractor known as AppCentrix as a participant. It was not put through a competitive bidding process, as is mandatory for all government contracts over R1-million unless the requirement is waived by the national treasury.

    The treasury said that it is unaware of the contract. The State Information Technology Agency, or Sita, which procures IT on behalf of government, was not consulted by the police on this contract as is also mandatory, the people said, declining to be identified because the information isn’t public.

    Confidentiality

    Telkom spokeswoman Noma Faku cited confidentiality clauses when asked why a tender for the new contract had not been held. The police and Sita didn’t respond to queries. Netxcom and AppCentrix declined to comment.

    “As a principle, Telkom does not withhold payment to its vendors,” Faku said by e-mail, saying she was commenting on behalf of George Candiotes, Telkom’s executive for legal services. “However, during 2017 Telkom conducted a supplier review. Based on this certain actions were taken between Telkom and suppliers including the withholding of payments where certain inadequacies in the contractual arrangements were identified.”

    E-mails between senior officials of of Telkom’s BCX unit said that the failure to pay Netxcom was souring Telkom’s relationship with the police and that Netxcom was still doing work for the police.

    The South African Police Service has not indicated any direct issues with the vendors or the work and we are receiving payment

    Telkom hasn’t answered questions on how the two contracts with the police differ.

    The revelations come as Cyril Ramaphosa, who took over as president in February, is overseeing a drive to stem irregular and wasteful spending that’s led to the termination of boards of state companies.

    Internal e-mail communication, seen by Bloomberg, between Telkom staff including its CEO, Sipho Maseko, and Candiotes corroborated what the people said about the non-payment of fees to NetXcom.

    The South African Police Service “has not indicated any direct issues with the vendors or the work and we are receiving payment”, Candiotes said in an April e-mail to Maseko. “Our view is that we are currently exposed in the instance where we cannot show why we cannot make payment, despite our contentions we have terminated the agreement.”

    Telkom, which is 41% owned by the government, is trying to terminate the relationship with Netxcom in favour of its newer contract, the people said.  — Reported by Nkululeko Ncana, (c) 2018 Bloomberg LP



    AppCentrix Netxcom Netxcom ICT Solutions Telkom top
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNigeria plays hardball with MTN in court
    Next Article Chip hack a sign of Chinese cyber threats to US, officials say

    Related Posts

    Icasa gears up for South Africa's next big spectrum auction - Tshiamo Maluleka-Disemelo

    Icasa gears up for South Africa’s next big spectrum auction

    17 February 2026
    Telkom tops 25 million mobile subscribers as data growth surges - Serame Taukobong

    Telkom tops 25 million mobile subscribers as data growth surges

    16 February 2026
    BCX CEO Jonas Bogoshi to retire after seven years at the helm

    BCX CEO Jonas Bogoshi to retire after seven years at the helm

    16 February 2026
    Company News
    Customers have new expectations. Is your CX ready? 1Stream

    Customers have new expectations. Is your CX ready?

    19 February 2026
    South Africa's cybersecurity challenge is not a tool problem - Nicholas Applewhite, Trinexia South Africa

    South Africa’s cybersecurity challenge is not a tool problem

    19 February 2026
    The quiet infrastructure powering AI: why long-life IOT networks matter more than ever - Sigfox South Africa

    The quiet infrastructure powering AI: why long-life IoT networks matter more than ever

    18 February 2026
    Opinion
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    19 February 2026
    MeerKAT detects most powerful natural radio laser ever observed

    MeerKAT detects most powerful natural radio laser ever observed

    19 February 2026
    How AI is rewriting the rules of consulting - Mark Allderman

    How AI is rewriting the rules of consulting

    19 February 2026
    Crackdown on students gambling away Nsfas money online

    Crackdown on students gambling away Nsfas money online

    19 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}