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The Special Investigating Unit (SIU) is preparing to apply for leave to appeal a recent High Court verdict that invalidated its authorization to investigate Telkom’s affairs.
Last month, the High Court ruled against the SIU’s authority to probe allegations of “serious maladministration, malpractice, and possible corruption” within the telecommunications company. This authorization had been granted through a presidential proclamation by President Cyril Ramaphosa.
The court’s decision was based on its determination that Telkom doesn’t qualify as a state institution. As a result, the SIU’s scope to investigate such allegations related to Telkom was considered invalid.
The SIU is responding by expressing its intention to appeal the ruling. According to the SIU, there’s a need for a more comprehensive understanding of what constitutes a state institution. This understanding is crucial to establish a clear legal precedent that defines the types of institutions subject to the SIU’s investigative authority.
At present, the government possesses a direct shareholding of 40.5% in Telkom, with an additional 15.3% shareholding through the Public Investment Corporation.
The SIU underscored the importance of clarifying the definition of a “state institution” in order to prevent potential cases where certain public institutions might inadvertently evade investigation by the SIU due to unclear parameters. The unit emphasized the necessity to address this issue and prevent any unwanted legal precedents that could hinder future investigations.
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