Procedures

• Informal Process
• Proprietary Tenders
• Restricted Tenders
• Formal Process
• Electronic Procurement (Procure to Pay)
• Code of Business Conduct
• Forwarding of Proof of Delivery (POD) Documents

Tender Process

Telkom's tender process for purchases can be divided into the following categories,

Informal Process

This process consists of the following:

Letter/Facsimile Tenders

This type of tender is restricted to purchases for amounts not exceeding R500 000.00 (VATE). These tenders are not published in Telkom's Tender Bulletin but are faxed, posted or handed to a minimum of 3 likely bidders. To ensure an open, fair and transparent tender process, tenders close on a specific date and time. Responses may be faxed, hand-delivered or posted.

Proprietary Tenders

This type of tender is restricted to the only (sole) supplier of a product for which there is no acceptable substitute. Telkom will obtain a fax quote from the supplier involved.

Restricted Tenders

This type of tender provides for:

• Work in key installation areas where tenders are restricted to firms who have been security cleared;
• The restriction of tenders to Escom, Iscor or local authorities for the provision of power to microwave towers, the re-routing of power lines, etc
• The invitation of tenders from Universities, CSIR, etc. for research and development projects.

These tenders are not limited to an amount and are also not published in Telkom's weekly Tender Bulletin.

Formal Process

Formal (open) tenders are invited. These tenders are published in Telkom's Tender Bulletin on this website and there is no restriction on who may tender.

Open tenders published in the Tender Bulletin are usually held open for a predetermined period of between one and four weeks depending on the complexity and amount of work done by prospective bidders. Closing time for all tenders, bids, etc. is normally at 11:00 on the closing date. A late response is not permitted for consideration and is returned to the bidders with an explanation. Telkom, may however, in its sole discretion admit a late response.

Electronic Procurement (Procure to Pay)

The Procure to Pay provides a neutral marketplace Exchange Operating Environment (EOE) that hosts top of the line business applications for Business to Business (B2B) trading. Relying on Telkom's expertise and world-class nation-wide infrastructure, this public exchange caters for end-to-end solutions and offers 24/7 support. The hosted trading environment offers a total procure-to-pay solution resulting in one or more of the following business benefits:

• Cost reduction as a result of re-engineered business processes;
• Automation of business processes;
• Broader customer and supplier reach;
• Greater accuracy;
• Increased productivity;
• Improved customer relationships;
• New revenue;
• Standardization.

• View Procure to pay

Code of Business Conduct

Supplier Selection

Selection of suppliers follows an open tender or bid process, allowing all potential suppliers to compete according to a model that is fair, equitable and consistent.

Conflict of Interest

Telkom employees may not have an interest with any supplier. This includes the supply of non-public information, assistance with planning and designing of products or active involvement in marketing and selling.

Gifts and Invitations

Seasonal, congratulatory or promotional gifts may only be offered to Telkom employees on strictly appropriate occasions, and when there is no reason to doubt the bona fides of the donor or recipient. Invitations to meals, sporting events, the theatre, cocktail parties and other forms of hospitality may not be offered with a view to influencing business decisions.
As a matter of policy, Procurement Services employees are not permitted to accept any such invitations or gifts in order to maintain a professionally aloof relationship.

Favours

An offer of commission, internal or any form of gratuity, for any reason whatsoever, is totally unacceptable and will lead to serious disciplinary action.

Bribes and Irregular Offers

Telkom's policy on bribery and irregular offers which serves as a precondition to accepting a contract, is summarised as follows:

Should a tenderer, bidder or contractor have, in the opinion of Telkom, acted fraudulently, illegally, in bad faith or in any improper manner, with regard to a contract or tender, then Telkom may, in its sole discretion:

• Ignore any tenders without advising the tenderer thereof
• Cancel the contract without prejudice to any legal rights Telkom may have

Telkom is committed to the highest standards of integrity and any employee transgressing the principles embodied in the Employee Code of Conduct will be treated in accordance with the company's Disciplinary Code. Should any supplier disregard these guidelines or conduct affairs in a way that transgresses Telkom's Code of Business Conduct, this could seriously impair future business relations between Telkom and such suppliers.

Forwarding of Proof of Delivery (POD) Documents

Proof of delivery documents (i.e. delivery notes, waybills, written acknowledgement of receipts, signed invoices which also serve as delivery notes) are faxed or forwarded immediately to Telkom's Purchasing offices specified in the Telkom order after delivery of the goods and that;

All proof of delivery documents reflecting the following particulars are signed:

• Full name of the receiving officer (in block letters);
• Job title;
• Signature;
• Salary reference number;
• Date of receipt;
• Telephone number;
• Section/location/office;
• Condition of consignment