The Competition Commission is investigating South Africa's mobile network operator, Vodacom Group, for abuse of dominance, after the company secured an exclusive contract with National Treasury to be the sole provider of mobile telecommunication services to government.
Vodacom says Treasury issued a tender and they followed every process in securing it.
Competition Commission spokesman, Sipho Ngwema explains that the procurement process is not in question, rather the provisions of the contract.
The Competition Act put certain obligations on dominant firms and Vodacom has 58% of this market.— Sipho Ngwema, Competition Commission Head of Communications
Ngwema says the Commission warned Treasury about the contract provisions prior to this being signed. Listen here...