Neotel CEO quits
Sunil Joshi is the second cleared executive to leave the company after the Homix scandal was probed.
|||Johannesburg - Neotel - SA’s second fixed-line operator - says its CEO, Sunil Joshi has resigned after being cleared in a probe that looked into possible tender irregularities.
Joshi was placed on leave earlier this year by the board while it investigated some transactions between Neotel and Homix.
This is the second executive to leave the company following a lengthy probe into the deals between Neotel and Homix after CFO Steven Whiley stepped down, also after being cleared, towards the end of last month. Neotel is in the midst of being bought by Vodacom in a R7 billion deal.
No details were provided in a brief statement issued on Monday by Neotel around the CEO’s resignation.
However, in July, the Mail & Guardian unveiled that Neotel paid R66 million in commissions, which it says were seemingly kickbacks, to Homix to secure contracts from Transnet. A further R25 million was agreed but not yet paid.
The paper added in August: “Homix is little more than a letterbox; an apparent front for persons undeclared. A former senior Gupta employee has been linked to Homix, but the politically well-connected family has distanced itself from him and denied having a relationship with the company.”
The M&G also noted that Neotel probed the payments after its auditors altered it to the issue in April.
Neotel’s board commissioned an investigation into the payments after the company’s auditors blew the whistle to it in April. In August, its CEO and CFO took special leave, it reported.
“The known Neotel payments to Homix were to clinch Transnet’s purchase of R300 million in telecommunication network equipment from Neotel and a five-year, R1.8 billion agreement for Neotel to provide Transnet with network services.
“It has emerged that Transnet has awarded two more large projects – closed-circuit television (CCTV) systems worth R835-million – to Neotel without tender and while Neotel was interacting with Homix.
“The first project, or “phase one”, was worth more than R329-million, according to a Transnet memorandum seen by amaBhungane. It entailed installing and maintaining CCTV networks at six ports controlled by Transnet,” reported the paper.
Neotel says its board found nothing to date that implicates Joshi personally in any bribery or corruption activities.
However, it adds, “we regret to inform you that Joshi has decided to pursue his own interests, and will resign from Neotel with immediate effect”.
No other reasons for his departure were given.
IOL