Share

Telkom wins fleet management court battle

Johannesburg - A fleet management business has lost its court battle with Telkom over a contract dispute.

Daimler Fleet Management (DFM) - a subsidiary of Mercedes Benz Financial Services that trades as Debis Fleet Management - launched a court action against Telkom after losing a contract to supply the telecom company's national team of field technicians with 6 000 vehicles.

DFM won a contract in 2000 to manage Telkom’s fleet of vehicles in South Africa. Telkom renewed the contract in 2008 and then extended it twice in 2012 and 2013.

But Telkom then placed its fleet management business out on tender last year and Bidvest won the contract.

Telkom said its contract with DFM made provision for a three month “lead out” phase after the expiry of the contract.

A dispute arose, however, between the two companies over whether vehicles used by Telkom’s national team of technicians were included in this lead out phase.

DFM subsequently launched a court action to obtain “clarity regarding certain important topics relating to the expiry of the agreement”, a spokesperson for the fleet management company told Fin24 earlier this month.

But the High Court in Pretoria on Friday ruled against DFM on the matter and ordered that Daimler pay the costs, including those of Telkom.

“The court denied DFM’s application and found in favour of Telkom, which DFM will abide by. We will study the judgement and proceed accordingly,” Jeanette Clark, manager for group external affairs and communication at Mercedes-Benz South Africa, told Fin24.

DFM's existing agreement with Telkom expired on March 31 2015, but has continued amid the court battle.

Subsequently, Telkom says the court’s decision opens the way for a transition of the fleet management contract to Bidvest.

“We are pleased the judge concurred with our view and that our transition to Bidvest will continue to be undertaken in a seamless and professional manner,” Jacqui O’Sullivan, the managing executive for group communication and public relations at Telkom, told Fin24.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.98
-0.2%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.39
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
911.88
-1.3%
Palladium
1,019.74
-4.3%
Gold
2,160.25
-0.0%
Silver
25.10
+0.3%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders