PRETORIA HIGH COURT SETS ASIDE ARBITRATOR"S PARTIA
TELKOM SA LIMITED - PRETORIA HIGH COURT SETS ASIDE ARBITRATOR"S PARTIAL AWARD IN
TELKOM"S REVIEW APPLICATION
Telkom SA Limited
(Registration number 1991/005476/06)
JSE and NYSE share code: TKG
ISIN: ZAE000044897
("Telkom")
PRETORIA HIGH COURT SETS ASIDE ARBITRATOR"S PARTIAL AWARD IN TELKOM"S REVIEW
APPLICATION
The Pretoria High Court today announced its decision to set aside the
arbitrator"s partial award made in Telkom"s dispute with Telcordia, following
the hearing of an extensive six-week review application that started on
11 August 2003. Telcordia was ordered to pay Telkom"s costs, including the costs
of three counsels.
In terms of the court order, the previous arbitrator, Boswood QC, was removed.
The case will now be heard by a panel of three retired Judges of the Supreme
Court of Appeal in South Africa.
Telkom"s successful application followed a partial award made by the arbitrator
in favour of Telcordia on September 27, 2002, despite a pending Section 20
application by Telkom in the South African High Court to resolve pertinent legal
issues on the matter.
The dispute first arose in 2000, when Telkom terminated its agreement with
Telcordia for the delivery of a fully integrated end-to-end customer activation
and assurance system.
Telcordia initiated arbitration proceedings under the auspices of the
International Chamber of Commerce (ICC) during the first quarter of 2001. In
response to Telcordia"s claims for outstanding amounts and certain out-of-scope
services of approximately $130 million, Telkom counter-claimed against Telcordia
for in excess of $300 million, including a claim for the refund of monies paid
by Telkom to Telcordia.
The High Court decision vindicates Telkom"s view that the partial award was
vitiated by serious irregularities. Telkom"s exposure to contingent liabilities
will be significantly reduced for now, and it can look forward to recovering
some of its expenses.
Johannesburg
27 November 2003
Issued by:
Andrew Weldrick
Senior Specialist, Media Relations
Telkom SA Limited
Tel: +2712 311 1050
Mobile: +2782 573 6772
Date: 27/11/2003 12:20:03 PM Supplied by www.sharenet.co.za
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