We’re no bullying Goliath — MTN

WE find the article “Laptop supplier in David and Goliath battle with MTN” (November 3) strongly biased against MTN. We are particularly perturbed by what appears to be an attempt to paint MTN as a dishonourable entity. The headline is seemingly intended to create the inference that MTN is a “Goliath” that is unfairly treating a small, defenceless company.

We wish to clarify the position as facts were omitted from the story.

New Age Holdings was a supplier of laptops to MTN for resale by MTN-branded stores. New Age and another company were requested to submit quotes for our order of the first quarter of 2012.

New Age was the cheapest supplier, but it could not meet other requirements such as after-sales support, marketing requirements and capacity. As price was not the only requirement for selecting a successful bidder, the tender was awarded to the other company.

However, a junior employee in MTN’s procurement business unit sent an e-mail to New Age [to the effect that] it had been awarded the first-quarter order. This was not correct as the award had not yet been finalised and no award letter had been issued to New Age. No purchase order had been placed on New Age. New Age issued summons against MTN, claiming R13-million for breach of contract. MTN is defending this case.

Contrary to what has been suggested, no settlement was reached with New Age to supply laptops for six months. The article also states that the contract between MTN and New Age was “prematurely terminated”. Yet New Age’s contract to supply laptops to MTN expired in October 2012 — it wasn’t terminated.

Before the contract expired, MTN informed New Age and the other supplier that MTN had changed its strategy from buying laptops from resellers to getting them for the company’s branded channels from distributors.

When MTN issued a new tender for the supply of laptops this year, neither New Age nor the other company were invited to submit proposals because they are not distributors, but resellers. The tender was finalised in May and a new supplier has been appointed.

The purpose of the meeting with the Government Employees Pension Fund, which your report suggests was to discuss the New Age matter, was to discuss a wide range of issues. Although we understand that New Age has approached the fund regarding its claim, the dispute between New Age and MTN is a business matter in which the fund and other shareholders are not involved. — Fusi Mokoena, acting chief corporate services officer, MTN South Africa

ý We stand by our story — the editor