CASE STUDYREAD THE CASE STUDY AND ANSWER THE QUESTIONS THAT FOLLOW:POOR CORPORATE GOVERNANCE IS HURTING TELKOMPoor internal processes and a lack of proper governance have cost Telkom $($TKG$)$ time and money commodities the group does not have an abundance of$,$ according to a telecoms analyst.Last week $(30$ March $2012),$ the group was forced to stop its planned R$13$ billion network overhaul afterinfrastructure provider, ZTE Mzansi, won a court order to halt the project.ZTE Mzansi, a joint venture between Chinas ZTE Corp and local black$-$owned companies, took Telkomto court after being disqualified from a bidding process related to the project.Spiwe Chireka, program manager for telecoms at market intelligence and advisory firm IDC said thatTelkom Group CEO, Nombulelo Pinky Moholi needs to focus on and fix internal corporate governanceprocedures at the telecoms giant, which still rears its ugly head at the company.In the past, bad processes and the lack of proper governance has cost Telkom time and money bothof which it does not have! No amount of money or profits will turn Telkom around if this is not coupledwith sound internal governance procedure, including procurement.Chireka noted that this was one of the areas that Moholi had vowed to fix when she was appointed ayear ago.While I dont know whether small victories have been achieved in this regard, I still believe if criticalprojects such as the above are still being impacted, then clearly a lot still needs to be done. Whathappened to thorough internal audits on existing and future deals as promised? the analyst asked$\mathrm{.}4$Playing devils advocate, Shireka noted caution when attributing the above case to Moholisadministration, questioning whether it had perhaps been inherited.Meanwhile, shares in Telkom continued to come under pressure on Wednesday $($April $4,2012),$ closing$1\mathrm{.}67\%,$ or $40$ cents off to R$23\mathrm{.}60$ on the JSE.Roshini Moodley, portfolio manager at RMB Private Bank said the group expects Telkom to remain underpressure following Fridays court order.This, together with the potential R$4\mathrm{.}5$ billion anti$-$competitive fine, and the worse than expected tradingupdate released on Friday, should continue to place the share under pressure, stated Moodley.The company is expected to report its annual results on the $11$ June, where investors would hope togain a clearer understanding of the losses surrounding the mobile business, and possibly more strategicdirection from management, which has been clearly lacking, the analyst said.Fred Teeling$-$Smith, a telecoms analyst at STANLIB said that defending market share among its businesscustomers is critical for Telkom and, in order to deliver on their hope of being the leading broadbandprovider in SA with superior data quality, the overhaul of their infrastructure is critical.Any delay in improving their infrastructure further delays their ability to provide a product that retainsmarket leadership, he concluded.QUESTIONS $1$: $(45$ Marks$)$King IV refers to the King IV Report on Corporate Governance for South Africa. It is a governancecode developed by the Institute of Directors in Southern Africa $($IoDSA$)$ to guide organizations oneffective corporate governance practices.Expound how does King IV go about instilling mindful application.