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Neotel CEO Sunil Joshi steps down

Neotel’s CEO Sunil Joshi has resigned with immediate effect to “pursue his own interests”, the company said in a statement on Monday (7 December).

This comes after Joshi was placed on special leave while an investigation was conducted into allegations of misconduct pertaining to deals between Neotel and Homix.

“The placing of Mr Sunil Joshi on leave was a Board initiated process, whilst an investigation was being conducted into certain transactions involving Neotel and Homix,” the company said.

It noted that Joshi complied with this process, co-operated with it, and fully supported the Board.

“As a result of the investigation and with the information available to the Board relating to the Homix transaction, the Board has found nothing to date that implicates Mr Joshi personally in any bribery or corruption activities.”

Last month Neotel said it is nearing the end of the disciplinary process regarding the alleged bribery to secure R2 billion worth of Transnet deals.

The Mail & Guardian linked the payments to a bid to clinch billions of rands in deals from Transnet.

Deloitte questioned the commerciality of the fees, and reported the matter to the Independent Regulatory Board of Auditors.

Neotel’s R7 billion merger with Vodacom, meanwhile, has been postponed indefinitely while new terms are discussed.

It was reported that Neotel being implicated in an alleged bribery scandal, may have influenced Vodacom’s plans to acquire the company.