Treasury ‘ignored watchdog guidance’ in multibillion-rand Vodacom tender
The commission is investigating Vodacom’s abuse of dominance in relation to the contract
The Competition Commission said it advised the Treasury against awarding a multibillion-rand tender to Vodacom as the exclusive deal would distort competition and further entrench Vodacom’s position. But the Treasury went on to award the contract in September 2016 despite the advice. The contract, estimated at R5bn over four years, is for the supply of enterprise voice, data and all mobility services. The commission said on Wednesday it was investigating Vodacom’s abuse of dominance in relation to the contract. The Treasury sought advice from the commission on competition issues that could arise from the deal before awarding it to Vodacom. The commission said the Treasury had requested clarity on whether the four-year period for the contract was acceptable in relation to the competition regulations. The commission’s spokesman, Sipho Ngwema, said the Treasury had "insisted that we confine the advice to the duration of the contract. "We disagreed with this confinement and elected to g...
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