Telecom Namibia announced that it has reached an out-of-court settlement agreement with Dresselhaus Scrap CC on 11 July 2005, effectively concluding a commercial claim filed by Telecom Namibia in the High Court of Namibia on 14 August 2001.

Telecom Namibia and Dresselhaus Scrap (a partnership) entered into a contractual relationship with each other in late 1997 concerning the sale of scrap copper. After far reaching allegations of corruption surfaced in early 2001, the contract was cancelled, a commercial dispute arose and criminal charges were instituted. The commercial aspects of the dispute between the parties has become resolved by Telecom Namibia being paid a portion of its claim by the estate of Mr. L I Ganes, an ex-employee, an amount of N$2,4 million by the partners of Dresselhaus Scrap, and by Dressel-haus Scrap abandoning its counterclaim of N$1,6 million.

Telecom Namibia reiterates its com-mitment to transparent business prac-tices and its zero tolerance of corruption in any form or guise.

Telecom Namibia is satisfied with the settlement agreement in this case. We will continue to maintain the Com-pany’s commitment to ensuring the integrity of its professed good corporate governance stance that our employees, our customers and all stakeholders have come to expect from us. We will hold accountable companies or individuals who attempt to defraud Telecom Namibia.

Telecom Namibia insists that all those doing business with the Company to be honest in their dealings at all times.