The sale of Thintana’s remaining 15,1% in Telkom to an elite, government-aligned consortium is an example of an opportunity lost for broad-based empowerment and an unusually unfortunate example of crony capitalism, says shadow communications minister Dene Smuts.
The Democratic Alliance MP said the transfer of equity “to a well-connected few at the expense of ordinary South Africans has become the empowerment pattern under this government’s BEE [black economic empowerment] policies.
“It is crony capitalism. Here crony capitalism has been taken to new levels. The deal includes Smuts Ngonyama, who is an active official of the ruling party [national spokesperson], and Andile Ngcaba, who has only recently vacated the director-generalship at the Department of Communications.”
She noted that the consortium will be entitled to appoint two members to the Telkom board.
Smuts said: “The more this government liberalises, the more it keeps control.
“It is not as though an alternative without the burden of the ANC [African National Congress] heavyweights was not on the table. The DA proposed a people’s consortium, which could have included beneficiaries numbering in the millions through stokvels and burial societies. The proposal had been referred to the Telkom board for its consideration.
“Thintana was, of course, free to sell where it wished within the parameters of the original shareholder’s agreement with the government of South Africa. It is understood that a BEE sale was one of the options available.
“We regret that a genuinely broad-based approach did not win the day.”
On Monday, I-Net Bridge reported that a consortium led by Ngcaba, the former director general of communications; the Women Investment Portfolio Holdings (Wiphold); and advised by Ngonyama has concluded an agreement to acquire the remaining 15,1% interest held by Thintana Communications in Telkom. — I-Net Bridge
Telkom welcomes BEE partner