South Africa: Court finds Vodacom, Transnet contract 'lawful'

22 June 2018


The South Gauteng High Court has ruled in favour of Vodacom in a battle between it and rival MTN over a contract with state-owned freight and logistics company, Transnet, worth R325 million.

"Justice Sutherland of the South Gauteng High Court yesterday ruled against MTN in its application to have Transnet's decision awarding a tender to Vodacom for the provision for communication services reviewed and set aside, as irregular and unlawful," a Vodacom spokesperson confirmed with ITWeb.

"Justice Sutherland found the award of the tender to Vodacom was free from any irregularities; and that the contract concluded between Transnet and Vodacom pursuant to the award of the tender was validly concluded and therefore lawful," Vodacom said.

According to Business Day, MTN's court papers argued that the contract with Vodacom, which was signed in February, should be set aside because the tender process had been "marred with irregularities".

MTN has for a number of years had a contract to provide mobile voice and data services to Transnet and has so far refused to port approximately 12,000 Transnet mobile numbers to Vodacom. This despite the Independent Communications Authority of South Africa (ICASA) ruling on 26 April that MTN must port the numbers within seven days. Read the full article on ITWeb here.