Telkom is hoping the US Securities & Exchange Commission (SEC) will reduce the R2,1-billion damages it has to pay Telecordia Technologies, having reneged on a software purchase.
A report in yesterday's Business Times says the telecommunications operator backed out of a 1999 agreement to buy software from the company and has been locked in litigation ever since.
Telecordia laid a claim for $130-million when the contact was cancelled, a claim that has been upheld in South African courts – including the Supreme Court of Appeal in Bloemfontein.
Meanwhile, interest on the amount has been piling up, bringing it to R2,1-billion.
Telkom is asking the SEC to limit the payout to R70-million as any more would have severe financial implications.