Telkom's Legal Triumph: Court Rules Against President Cyril Ramaphosa

In a recent high-profile legal battle, Telkom, the South African telecommunications giant, has emerged victorious against President Cyril Ramaphosa. The court case revolved around Ramaphosa's directive to the Special Investigating Unit (SIU) to probe into alleged mismanagement within Telkom, specifically concerning the sale of iWayAfrica and Africa Online Mauritius, as well as the failed Multi-Links telecommunications company, which Telkom had acquired in Nigeria back in 2006.

President Ramaphosa's Directive and Telkom's Losses

The controversy stemmed from President Ramaphosa's order to investigate the procurement of telegraph services, leading to significant financial losses for Telkom and its shareholders. The telecom company, in which the South African government holds a 40.5% stake, with the Public Investment Corporation, another state-owned entity, holding 14.8%, suffered millions of rands in shareholder value erosion due to the investigation.

Challenging the President's Decision

Chris Teurlinckx, Telkom's Acting Group Executive for Legal Services, made a bold assertion  in June 2022, declaring that President Ramaphosa had acted unlawfully by instructing the SIU to delve into alleged misconduct that dated back to 2006. Following this, Telkom went on to take decisive action in July 2022 by petitioning the Pretoria High Court. The company sought to have the court declare Ramaphosa's decision to order the investigation as unconstitutional and invalid.

In a courtroom showdown, the Pretoria High Court passed a ruling with certainly far-reaching implications. Telkom's claims against Proclamation 49, issued by President Ramaphosa on January 25, 2022, were upheld, rendering the proclamation unconstitutional, invalid, and devoid of any legal effect.

Telkom's CEO, Serame Taukobong, emphasized that the company had already addressed the allegations contained in Proclamation 49 through its internal corporate governance processes. The results of these internal proceedings are part of the public record. The telco's decision to challenge the proclamation stemmed from a belief that if left unchallenged, it could set a perilous precedent concerning the extent of state intervention in private enterprises.

Telkom's victory against the South African President insightfully highlights the intricate connection between politics and business, leading to captivating legal drama that grips the nation. The ruling not only resonates in the corridors of power but also prompts reflections on corporate governance, state involvement, and the delicate balance between public interest and private enterprise. Telkom's future relationship with the South African government is uncertain as the legal situation unfolds in the country's complex socio-political landscape. Only time will tell what happens next.