The Supreme Court of Appeal’s hearing on 28 May has put the four‑year standoff between Telkom and the Special Investigating Unit (SIU) on the brink of resolution, a development disclosed in Telkom’s 2025/26 annual report. The case will decide whether the anti‑corruption body can resume a probe that stretches back to 2006, covering a R10‑billion‑plus failed expansion into Nigeria and a string of disputed sales and contracts.
President Cyril Ramaphosa’s Proclamation 49 of 2022 instructed the SIU to investigate “serious maladministration, malpractice and possible corruption” at the partially state‑owned telecoms group. Telkom, which is 40.51 % owned by the state and another 11.08 % held by the Government Employees Pension Fund, challenged the proclamation on the grounds that it is not a state institution under the SIU Act. The High Court in Pretoria ruled in Telkom’s favour in July 2023, declaring the proclamation unconstitutional and ordering the SIU to return its files.
The SIU appealed almost immediately, arguing that a broader definition of “state institution” was needed to guide future investigations. After a series of procedural hearings, both the President and the SIU were granted leave to appeal to the Supreme Court of Appeal in December 2023. With judgment now reserved, the legal community watches keenly for a ruling that could reshape the SIU’s jurisdiction across South Africa’s corporate landscape.
Key moments in the Telkom‑SIU saga
| Date | Event | Outcome |
|---|---|---|
| Jan 2022 | Proclamation 49 issued | SIU ordered to investigate Telkom |
| Jul 2023 | High Court (Pretoria) decision | Proclamation set aside; Telkom cleared |
| Dec 2023 | Leave to appeal granted | Both parties move to Supreme Court of Appeal |
| May 2024 | Supreme Court of Appeal hearing | Judgment reserved, decision pending |
The timeline shows a steady escalation from a presidential directive to a constitutional showdown, underscoring how deeply the definition of “state institution” is contested.
Group CEO Serame Taukobong has maintained that the matters under scrutiny have already been dealt with through Telkom’s internal governance and that the allegations are part of the public record. In the company’s latest results, Telkom stressed that the investigations, dating back to 2006, are unlikely to have a material impact on its financial statements regardless of the final court ruling.
The broader implications extend beyond Telkom’s balance sheet. A ruling that broadens the SIU’s reach could pull a swathe of partially privatised entities—such as Eskom, Transnet and various state‑linked investment arms—under the anti‑corruption unit’s microscope. Conversely, a narrow interpretation would reinforce the legal separation between public ownership stakes and private operational control, offering a clearer shield for mixed‑ownership companies.
Potential impact on corporate South Africa
| Scenario | Effect on SIU powers | Impacted entities |
|---|---|---|
| Broad definition | SIU may investigate any company with ≥ 25 % state ownership | Eskom, Transnet, South African Airways, etc. |
| Narrow definition | SIU limited to wholly state‑owned bodies | Only entities classified as “state institutions” in the strict sense |
If the court adopts the broader view, the SIU could become a much more formidable watchdog, potentially deterring malpractice in sectors critical to the national economy. A narrow ruling, however, would preserve a status quo where mixed‑ownership firms remain largely insulated from SIU scrutiny, shifting the burden of accountability back onto internal auditors and board committees.
While Telkom’s financial performance appears robust—revenues have held steady despite the legal cloud—the uncertainty surrounding the case has kept investors cautious. The company’s share price has fluctuated within a 2‑3 % range since the High Court decision, reflecting market sensitivity to regulatory risk.
The Supreme Court of Appeal is expected to release its judgment soon, though no exact date has been set. Regardless of the outcome, the decision will set a precedent that will be cited in future disputes over the reach of South Africa’s anti‑corruption framework. As the nation grapples with calls for greater transparency and accountability, the Telkom SIU investigation stands as a landmark test of how far state oversight can extend into partially privatised enterprises.