The was a big question mark over whether Communications Minister Ivy Matsepe-Casaburri is overstepping her powers by determining a new process in selecting the 51% stakeholder in the second national operator, says official opposition MP Dene Smuts.
The Democratic Alliance’s communications representative said not only will government be a stakeholder through Esitel and Transtel, “but the private equity partner will be determined through a direct deal after ‘competitive’ negotiation with investors”.
This follows Tuesday’s announcement’s by Matsepe-Casaburri to set up a committee to negotiate with parties interested in taking up a stake in the SNO and also follows unsuccessful bids from two consortia vying for the majority stake. The industry regulator, the Independent Communications Authority of South Africa (Icasa), recommended last week that bids by Optis and Goldleaf be rejected.
Smuts said telecoms legislation used for this invitation-to-a-deal and the previous invitation to apply (ITA) for the 19% black empowerment equity gave the minister scope to determine only the manner of applications and the licensing process. “The licensing authority under the law is Icasa, therefore, it should choose the licensee.”
Smuts said she was concerned that the new notice “unambiguously instructs Icasa to license the minister’s choice after integrating all equity holders into a juristic entity”.
Suzanne Vos, Inkatha Freedom Party representative, said: “It is clear that the process is fraught with danger. Earlier on one was assured by the director general (Andile Ngcaba) that investors were beating at our door.
This is clearly not the case. The bottom line is what we are doing is selling off the family silver … one would wish to see as open and transparent process as possible.”
The decision on the successful applicant will be taken in three months by Matsepe-Casaburri. Goldleaf and Optis are not excluded from the process of negotiation.
Pakamile Pongwana, communications department deputy director-general, will chair the SNO committee set up to manage the bidding process. – I-Net Bridge