Liquid Intelligent Technologies, which bought Neotel, says none of the executives who were involved in corrupt dealings with state-owned enterprise Transnet were still in the company when it took over the fixed-line operator almost five years ago, distancing itself from graft identified through the Zondo Commission.
This week, the second part of the state capture report implicated telecoms and technology companies Neotel and T-Systems’ involvement in corrupt dealings at Transnet during Brian Molefe’s time as CEO of the rail, port and pipeline company.
Neotel, then SA’s second-largest fixed-line operator after Telkom, was bought by Liquid in 2017 after India’s Tata Communications sold its stake in the business.
Liquid says “the incident in question” happened when Tata Communications was the majority shareholder and manager of Neotel.
“In 2017, Liquid Intelligent Technologies acquired Neotel, and Liquid was advised prior to the acquisition of Neotel that the recommendations emanating from the investigations conducted had been implemented,” said Deon Geyser, CEO of Liquid Intelligent Technologies SA.
He said none of the executives who were involved in the transactions were part of the organisation during the time of the acquisition. “We are unable to comment further on this matter. Liquid has co-operated fully with the commission and provided information and assistance to the best of its ability,”
Liquid says it is confident that such an event “could not recur under the strict protocols” that employees need to adhere to under its anti-bribery and anti-corruption programme implemented internally.
According to the report, in 2013 Transnet issued a large tender for network services.
In evaluating the bids, Neotel was ultimately ranked first, based on price and preference. It had a price of R1.363bn, with 90 preference points. Dimension Data ranked second with a price of R1.585bn and 75.37 preference points. T-Systems was ranked third with a price of R1.737bn and preference points of 65.35.
Despite Neotel having been identified as the preferred bidder, Molefe, who was Transnet’s CEO at the time, is said to have reversed the award, giving the contract instead to T-Systems. The state capture report states that T-Systems had links with the Gupta family.
Molefe later revoked this decision and the contract was again awarded to Neotel.
The report says substantial improper payments were made by Neotel to Homix, a company linked to the Guptas.
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