Telkom dials up controversy

Telkom has come under fire over the appointment of three agencies to take on its multimillion-rand advertising, marketing and communication contract.

The telecoms company has been criticised for appointing an agency linked to allegations of black economic empowerment fronting, and for hiring one based overseas.

Odette van der Haar, CEO of the Association for Communication and Advertising, said Telkom had embarked on an unfair selection process that went against the association’s code of conduct.

“Telkom has not given us a plausible reason for their refusal to follow the code of conduct which ensures all agencies compete on an equal footing and enhances fair trade and equal opportunities,” she said.

Telkom said on Monday it had appointed Wunderman, which is headquartered in New York, along with local agencies Demographica and Retail Insight.

Wunderman is a subsidiary of the advertising agency Y&R, which in 2012 was accused of being involved in fronting by its BEE partner.

Telkom spokesman Gugulethu Maqetuka said the companies were chosen based on their pitches. “I won’t speak on the allegations [of fronting] but the other two companies had strong BEE credentials.”

Tshwane Malope, a member of the ANC professionals and academic task team, has written an open letter to Telkom CEO Sipho Maseko asking why the company “reverse[d] its transformation gains”.

Brand strategist Taelo Immanuel said the awarding of the contract to a multinational showed Telkom was not serious about transformation. “Black people are good enough to keep Telkom going but we are not seen as good enough to get the business.” Read Malope’s open letter to Telkom online.