ALLEGATIONS that a councillor at the Independent Communications Authority of South Africa (Icasa) had leaked information to the industry were of "grave concern", Telkom said on Wednesday.

Such conduct compromises Icasa and may raise questions about its relationship with the industry it regulates. The councillor may be suspended if it is found that he violated internal processes and the Icasa Act.

Business Day reported last week that Icasa had called on the State Security Agency to investigate the leak.

Councillor William Stucke is alleged to have leaked findings and recommendations made by Icasa's complaints and compliance committee on a matter between Telkom and Neotel to an industry body.

Neotel filed a complaint at Icasa in 2010 after Telkom refused it access to telephone exchanges. The hearings were held in May.

The regulator received a letter from one of the companies recently, asking it to explain why the industry body got wind of the outcome before it was informed.

Telkom said that as a member of the industry regulated by Icasa, it was "dismayed by a possible violation of due process, which will unavoidably jeopardise the trust and confidence of the industry in the regulatory processes".

It said it "would be appalled by the breach, particularly if it was committed by an Icasa councillor as alleged".

"Telkom is investigating the implications of possible damage that it may suffer from the alleged conduct relating to the leak of confidential internal information," it added.

It said in-depth investigation was needed to restore a sound relationship between Icasa and the industry.

Paseka Maleka, spokesman for Icasa, said on Wednesday: "The allegations of the leaking of information have been brought to the attention of the authority and an investigation has been commissioned."