The Congress of South African Trade Unions (Cosatu) on Wednesday asked whether members of a black empowerment consortium have used their official positions to obtain a deal with Telkom that is scheduled to be concluded next week.
The consortium, which has links to the ruling African National Congress, is to buy a 15,1% share in Telkom worth more than R6,5-billion.
Cosatu called for a law forbidding former public officials from becoming shareholders in companies connected to their function in the government for a specified number of years — and for Telkom to be re-nationalised.
In a statement, spokesperson Patrick Craven asked whether Andile Ngcaba used his former position as director general of communications to create the conditions for such a deal, which he will now able to use to his advantage.
Ngcaba, however, said the application was ”commercially run and a competitive process”.
”There were a number of other bidding entities,” he said.
Craven also asked whether Smuts Ngonyama’s position as adviser to the president gave him access to privileged information that could help him in his business career.
Ngonyama could not be reached for comment.
”Is this not a typical example of a government policy-maker throwing a javelin into the private sector and then picking it up before it has landed, as a businessman?” asked Craven.
Cosatu further questioned whether there is a conflict of interest between Ngcaba’s shareholding in Telkom and his current position as chairperson of Didata, a potential rival to Telkom.
The absence of a law restricting former public officials from involvement in companies connected with their government functions invites a serious conflict of interests.
”At worst, [they could] be involved in outright corruption by using their political contacts to enrich themselves.”
Cosatu said the Telkom deal will do nothing to help the majority of South Africans and ”epitomises the very worst form of so-called ‘black economic empowerment’ which benefits only a tiny elite”.
”This deal makes Cosatu even more convinced that Telkom should be returned to state ownership.
”No one, especially government and political officials, should be allowed to enrich themselves at the expense of the thousands of workers who have lost their jobs and the thousands of poor families whose phones have been disconnected because they cannot afford Telkom’s high charges.” — Sapa
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