By Lehlohonolo Lehana.
The Portfolio Committee on Communications and Digital Technologies has summoned Minister Solly Malatsi to brief Parliament on the newly issued policy directives aimed at easing Broad-Based Black Economic Empowerment (B-BBEE) requirements.
The policy directives appear to be in contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX.
Malatsi announced, through a media statement, the gazetting of the proposed policy direction to the Independent Communication Authority of South Africa (ICASA) on Equity Equivalent Investment Programmes (EEIP) in the ICT sector.
Section 9 (2) (b) of the Electronic Communication Act (ECA) 36 of 2005 provides the legislative framework on the application for and granting of individual licences in the ICT sector and mandates ICASA to regulate historically disadvantaged groups’equity requirement at no less than 30%.
“The Portfolio Committee on Communications and Digital Technologies has invited Minister Solly Malatsi and the Department of Communications and Digital Technologies to appear before the committee and brief on the recently gazetted policy directions,” Committee Chairperson Khusela Diko said.
Diko noted that the recently “gazetted policy directions appear to be in contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX”.
The policy directives were published just days after President Cyril Ramaphosa and his delegation met with US president Donald Trump and his close adviser, Elon Musk, at the White House on Wednesday.
Prior to the meeting, reports suggested that the government was considering ways to accommodate Musk regarding B-BBEE ownership rules as part of efforts to improve relations with the US and attract investment.
The policy directive has however drawn criticism, with the Economic Freedom Fighters (EFF) rejecting the announcement.
“The EFF expected this betrayal, and we have consistently warned that the Government of National Unity (GNU) is facilitating the erosion of transformation in the interests of white capital and Western imperialism,” the party said.