Latest news with #DepartmentofCommunicationsandDigitalTechnologies
IOL News
28-05-2025
- Business
- IOL News
Business rescue practitioners prepare to file court papers to exit Post Office
Business rescue practitioners say they have informed the Department of Communications and Digital Technologies of the pending court application to terminate the business rescue at the South African Post Office. Image: Independent Newspapers Archives The business rescue practitioners are preparing to file papers with the High Court as part of the exit strategy from the South African Post Office (SAPO). This was revealed by co-business rescue practitioner Anoosh Roopal, along with his co-business rescue practitioner Juanito Damons, who briefed the Communications and Digital Technologies Portfolio Committee on Wednesday. 'We are in discussions with the department around the business rescue having to end and business rescue practitioners having to leave,' Roopal said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ SAPO was placed under provisional liquidation in February 2023 and later on business rescue in July 2023 after the board of directors was dismissed two months earlier. Upon their appointment, Roopal and Damons developed a business rescue plan that was approved by the creditors and then assumed management control of the business. Roopal said they were now in discussions with the Department of Communications and Digital Technologies and preparing a court application to terminate the business rescue process. This takes place as the financial plan to ensure SAPO remained a going concern was being finalised amid moves to secure payment of R509 million of statutory and payroll creditors owed to the South African Revenue Service (SARS) and medical aid schemes. 'Despite the R3.8 billion not being provided, the business rescue practitioners and the department are in discussions to develop an alternative plan to pay the remaining 18-cent creditors,' he said. Damons told the committee that they had already consulted their attorneys about the pending application, and the department was aware that they were preparing an application. 'We will ask the court to terminate the business rescue, and we would also ask for consent so that Anoosh and I can file with the Companies and Intellectual Property Commission a notice of substantial implementation.' Damons said the application comes at a good time, as there was a specialised court in Gauteng that dealt with insolvency and business restructuring. 'To get to that court, it will take us about three to four weeks if we go on a semi-urgent basis, for example,' he said. Court papers will be drafted next week, and engagements with the department and the unions will take place to make sure all are on the same wavelength. Damons said that when a business enters business rescue, it has to show that the company does not have the financial ability to cover its operational expenses when they become due and payable. 'At SAPO, at least that does not give us sleepless nights, we have enough funding from June and the ensuing six months. SAPO will be able to pay its operational expenses next six months.' Roopal said SAPO now has a turnaround strategy in line with its fulfillment of the strategic objectives at the entity. 'What we did was the turnaround strategy. We are quite comfortable that the Post Office has been equipped with a strategy that is viable. All of this depends on funding,' he told the committee. He also said they were looking together with the Department of Communications and Digital Technologies to find an alternative to pay about R509m owed to statutory bodies such as SARS and medical aids. 'That will discharge the rescue plan and hand over the business back to the shareholder,' said Roopal. Damons said the department has asked them to negotiate with the creditors owed R509m in statutory and payroll deductions. 'We started talking to these creditors about possible deferment of payment. The department asked us to have a discussion around deferring these payments until 31 March 2026. We reached out, and we have not finalised anything.' However, Damons said there was a lot of work left in terms of the exit strategy. 'We don't want to be irresponsible by leaving SAPO and finding they are back in this situation, and there is another application looming. 'Exiting business rescue would mean giving up the moratorium that is in place that protects SAPO from any legal proceedings; to start proceedings must get consent of business practitioners before approaching the court.'
Eyewitness News
26-05-2025
- Business
- Eyewitness News
Malatsi to appear before Parliament committee over new draft ICT policy
JOHANNESBURG - Communications Minister, Solly Malatsi could be in for a grilling in Parliament after the communications portfolio committee summoned him over a directive that could see billionaire Elon Musk's Starlink land in South Africa. This, after Malatsi's department published a policy directive for public comment last week, sparking speculation that government had been swayed to bend the rules for Musk. If passed, the policy will loosen Affirmative Action laws requiring foreign investors in telecoms to sell 30% of equity in their local entity to historically disadvantaged groups in order to qualify for operating licences. The Department of Communications and Digital Technologies said the proposed policy is not meant to subvert the country's transformation agenda. Instead, it would include a clause for companies to take part in equity equivalence programmes. This would see foreign firms invest in programmes geared towards equity, skills development and economic inclusion. In a statement published on X, communications portfolio committee chairperson Khusela Diko, said Malatsi must come before parliament to account for what she said appears to be a contravention of the Electronic Communications Act. Diko further described it as attempts to circumvent the law through policy directives not worth the paper they are written on and a glaring invitation for litigation. In a reply on X, Malatsi said he would honour the invitation for Tuesday's meeting. ALSO READ:
Eyewitness News
23-05-2025
- Business
- Eyewitness News
Communications Dept: Gazetting of draft policy in ICT sector has nothing to do with Starlink
JOHANNESBURG - The Department of Communications and Digital Technologies said that Friday's gazetting of a draft policy in the ICT sector has nothing to do with international satellite company, Starlink. Minister Solly Malatsi issued the draft policy direction for public comment on Friday. ALSO READ: • Companies who benefit from easing of BEE requirements need to invest in equity equivalent - Communications Dept • Communications Dept issues gazette to review B-BBEE licensing requirements for satellite service companies If passed, this will allow companies in the ICT sector, like Elon Musk's satellite internet company, Starlink, to operate without complying with a 30% black ownership requirement. The draft policy direction by Malatsi follows remarks by Musk that he had been denied a license to operate in South Africa because he was not black. If the proposed policy passes, the way would be paved for the company to operate in South Africa without being 30% black-owned. But the department's spokesperson, Kwena Moloto, denied that this move had anything to do with Starlink or this week's meeting between presidents Donald Trump and Cyril Ramaphosa, where Musk was present. With the public invited to make comments on the draft policy direction, the Economic Freedom Fighters (EFF) said that it would challenge the proposal in Parliament.
Eyewitness News
23-05-2025
- Business
- Eyewitness News
Communications Dept issues gazette to review B-BBEE licensing requirements for satellite service companies
JOHANNESBURG - The Department of Communications and Digital Technologies has issued a gazette to review B-BBEE licensing requirements for satellite service companies. In a statement, Minister Solly Malatsi said that this was in line with government's efforts to attract foreign investment. The announcement comes just days after US President Donald Trump met with President Cyril Ramaphosa to try and reset bilateral relations. Malatsi said the current regulations did not allow many companies that can contribute to the country's transformation goals to qualify for individual licenses under the Electronic Act. "Currently, the rules around who can acquire a licence to provide electronic communications services or to operate an electronic communications network require a minimum of 30% shares to be in the hands of historically disadvantaged individuals. "EEIPs, provided for under the Broad-Based Black Economic Empowerment Act (Act 53 of 2003) and the ICT Sector Code, allow qualifying multinationals to meet empowerment obligations through alternatives to 30% ownership — such as investing in local suppliers, enterprise and skills development, job creation, infrastructure support, research and innovation, digital inclusion initiatives, and funding for SMMEs."
Eyewitness News
12-05-2025
- Business
- Eyewitness News
Presidency launches digital roadmap to modernise government services
JOHANNESBURG - The Presidency has launched a digital roadmap to modernise government services under the next phase of Operation Vulindlela. On Monday, Minister Solly Malatsi is set to lead the Department of Communications and Digital Technologies delegation at the launch of the Roadmap on the Digital Transformation of the South African Government. President Cyril Ramaphosa said the new plan would streamline public service delivery, with a single digital platform for citizens to access government support. To drive the strategy, the Presidency has appointed technology entrepreneur, Melvyn Lubega, to head a new digital service unit tasked with overseeing the rollout of real-time payment systems, ID verification and data exchange across state departments. The Presidency's spokesperson, Vincent Magwenya, said the plan forms part of the seventh administration's economic reform agenda and is hoped to boost growth and job creation through digital innovation. "To drive implementation of the roadmap, the Presidency is establishing the Digital Service Unit (DSU) to coordinate this whole-of-government effort to modernise services. Mr Lubega is a globally recognised technology pioneer who co-founded Go1 - a platform used by businesses, non-profit organisations, and governments in more than 60 countries. He has advised governments in Africa, Asia and Europe on digital transformation programmes."
