Table of Contents
Key Points:
- South African telecom giant cleans house after uncovering fraud involving employee misconduct and external scams.
- Vodacom vows to protect customers, investigates over 8,000 cases and cracks down on SIM swapping and unauthorized airtime allocation.
- Vodacom explores infrastructure partnerships with Orange to boost African connectivity.
Vodacom, a Johannesburg-based telecommunications giant, led by South African executive Shameel Joosub, has dismissed 631 employees and announced the arrest of 15 suspects following an extensive investigation into fraud and various irregularities within the company.
Vodacom uncovers fraud
The investigation, conducted by Vodacom’s corporate security division, covered 8,652 cases from April 1, 2023, to March 31, 2024. Of these, 6,872 were external cases, while 1,780 were internal, stemming from direct customer reports, service provider feedback, online submissions, business referrals, external whistleblowers, and the company’s internal fraud management system.
A Vodacom spokesperson elaborated on the types of misconduct uncovered, which included identity and SIM swap fraud as well as unauthorized allocation of free airtime. “Vodacom Group has zero tolerance for fraudulent activity on networks in each of the countries in which it operates and remains committed to taking appropriate action to ensure the protection of its customers,” the spokesperson said.
Vodacom revenue up under Shameel Joosub
Vodacom Group, led by Shameel Joosub, boasts over 200 million subscribers across Africa. Beyond South Africa, Vodacom has operations in Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho, underscoring its commitment to expanding connectivity on the continent.
Joosub, one of South Africa’s wealthiest executives, holds a 0.09 percent stake in Vodacom, valued at roughly $9.56 million (R175.1 million). The veteran South African executive has been instrumental in guiding the company to recent financial achievements.
Vodacom’s revenue surged 26.4 percent year-on-year to R150.59 billion ($8.24 billion) for the fiscal year ending March 31, 2024. This marks an impressive financial milestone for the group.
Vodacom, Orange mull Africa infrastructure deal
In recent strategic developments, Vodacom has been in discussions with French telecom competitor Orange to explore potential infrastructure partnerships across Africa, aiming to reduce network rollout costs.
The company has also announced the launch of a triple-band mobile radio unit, which integrates the 1800MHz, 2100 FDD, and 2600 TDD frequency bands into a single unit, marking a significant technological advancement in their operations.
