Latest news with #SollyMalatsi
Mail & Guardian
10 hours ago
- Business
- Mail & Guardian
Starlink raises questions about necessity and relevance of BEE laws
The licensing of Elon Musk's Starlink has sparked debate about whether South Africa's black economic empowerment laws are an impediment to growth or path to an inclusive economy The South African government may have said that black economic empowerment is not negotiable, but Starlink's battle to enter the market has brought into play the influence of international trade. During a Q&A session in parliament last week President Cyril Ramaphosa said his administration is seeking to create an inclusive economy making broad-based clack economic empowerment (broad-based BEE) legislation critical. Ramaphosa was asked a barrage of questions about racial categories by members of the National Assembly on Tuesday and whether he was willing to do away with BEE laws. Starlink's efforts to set up shop changed in February shortly after US President Donald Trump was inaugurated into office and the company withdrew from licensing hearings. Instead the company argued in submissions that its global policy does not allow local ownership. Democratic Alliance (DA) member George Michalakis asked Ramaphosa whether he would do a cross-departmental review of legislation that stifles investment and limits growth at 1%. This came after Minister of Communication and Digital Technologies Solly Malatsi, a DA member in the coalition government, issued a policy directive to review ownership requirements in the information and communication technology (ICT) sector. Malatsi Portfolio committee chairperson Kusela Diko had invited Malatsi to explain the policy directive and said other telecom companies do business in the country without complaint. Malatsi told committee members that his department sought to allow contribution to transformation besides share ownership to historically disadvantaged groups. Portfolio committee members accused Malatsi of seeking to draw back transformation for the sake of one multinational company and for using a ministerial policy directive instead of tabling a bill to amend legislation. After receiving public comments in the next 30 days, the Independent Communications Authority of South Africa (Icasa) will conduct a six-month study on whether equity equivalent programmes (EEIPs) can be implemented in the ICT sector. While the ANC is considering EEIPs under the Transformation Fund as an alternative to the 30% share requirement, it rejected Malatsi's policy directive, stating there was no deal struck during the Washington visit. Economic Freedom Fighters committee member Sinawo Tambo criticised Malatsi for using a ministerial directive to amend legislation, and said the tactic sought to circumvent parliamentary processes. uMkhonto weSizwe party portfolio committee member Colleen Makhubele said Malatsi was using a 'clandestine unilateral approach' to fast-pace licensing of Starlink instead of empowering 490 already licensed network providers. Although South African billionaire Johann Rupert, When answering Michalakis' question during the Q&A Ramaphosa said he would initiate a 'regulatory review process' that would unleash 'speed of execution' in government administration but doubted BEE was the issue holding the economy back. Corné Mulder, leader of the Freedom Front Plus, asked whether Ramaphosa was prepared to take a different approach, away from BEE and the Expropriation Act, to stimulate the economy. Ramaphosa said his starting point was the redress of past black economic exclusion and cited an International Monetary Fund report that highlighted the concentration of capital and ownership, where the top 10% own 86% of the wealth as the hurdle for growth. 'I'm rather surprised and taken aback when I hear that the policy of BEE militates against the growth of our economy. That I find surprising,' he said. 'If we accept that ownership of our economy is imbalanced, the clause on equality in our constitution seeks to undo that. So therefore ownership in our economy should be broadened,' he said. Build One South Africa leader Mmusi Maimane agreed that the EEIPs as an alternative to share holding are important to attract foreign investment and asked Ramaphosa whether these will be extended to South African companies. Ramaphosa said his government was looking at a number of laws that would address both past racial exclusion and growth to build an inclusive economy. 'To do so we need to take into account where we come from, what our constitution says, what our laws say and be able to move forward in a very determined way,' he said.
IOL News
2 days ago
- Business
- IOL News
Starlink under scrutiny: Minister Malatsi backs ICASA's probe into unauthorised services
Communications and Digital Technologies Minister Solly Malatsi. Image: X / IOLGraphics Communications and Digital Technologies Minister Solly Malatsi has thrown his weight behind the Independent Communications Authority of South Africa (ICASA) to investigate Starlink, a satellite internet service operated by SpaceX, for allegedly operating in the country without authorisation. This development comes after the uMkhonto weSizwe Party (MK Party) alleged that Starlink was offering its services in South Africa without a licence. ICASA confirmed that the organisation had launched an investigation into the alleged unlawful use and provision of Starlink services in South Africa. ICASA spokesperson, Milly Matlou, said: 'ICASA has launched an investigation into the alleged unlawful use and provision of Starlink services in SA. We have also engaged SpaceX for further clarity and have currently deployed inspection teams on the ground to investigate the matter further.' If found guilty, the company could face enforcement actions, including fines or even a ban on its operations in the country. 'Should the investigation yield any breach with regulatory and legislative frameworks, the authority will explore the applicable enforcement actions within its disposal, which may include, among others, lodging a formal complaint with the International Telecommunication Union (ITU),' Matlou said. The MKP alleged that Starlink was operating in South Africa without authorisation, using a shadow entity called "ICASAsePUSH" to masquerade its operations. The party claimed that this operation constitutes a 'blatant' violation of South African telecommunications law and represents a direct affront to the country's Broad-Based Black Economic Empowerment (B-BBEE) framework. The party launched its allegations during the Portfolio Committee on Communications and Digital Technologies meeting in Parliament on Tuesday. 'During that session, the MK Party directly challenged the Minister of Communications and Digital Technologies regarding his awareness of this operation. His professed ignorance was not only unacceptable but deeply troubling,' party spokesperson Nhlamulo Ndhlela said. Malatsi has expressed his full support for ICASA's investigation, stating that it is the regulator's responsibility to manage both licence applications and investigations. 'The minister was made aware of the allegations when they were raised in the portfolio committee on Tuesday. It is now ICASA's responsibility to investigate these allegations, and the minister fully supports this investigation,' Malatsi's spokesperson, Kwena Moloto, said. This will be the second time the authority investigates Starlink's dealings. In 2023, ICASA issued a notice, warning that it was illegal for anyone or company to use Starlink, as it doesn't hold a licence to operate in the country. Meanwhile, during the session on Tuesday, Malatsi defended his recently gazetted proposed ICT policy adjustments, saying that it was intended to attract investment into the sector. He said it was not a way to allow Elon Musk to operate in South Africa. 'We are not attempting to open a new dispensation for Starlink or any other company or individual,' he told Parliament's Portfolio Committee on Communication. 'We are saying that the regulations in our sector must consistently make provisions for the two choices that exist in any other sector,' Malatsi said after his department on Friday gazetted a proposed policy direction to the ICASA. Cape Argus
IOL News
2 days ago
- Business
- IOL News
Icasa could clip Starlink's wings if found to be operating illegally
Communications and Digital Technologies Minister Solly Malatsi has defended ICT policy, denied special treatment for Starlink, and stressed the need to align sector regulations with transformation laws through equity equivalent investment options. Image: X / IOLGraphics Billionaire Elon Musk's Starlink could be slapped with fines or even a ban on its operations if found to be offering services without authorisation in the country. The Independent Communications Authority of South Africa (ICASA) confirmed that the organisation had launched an investigation into the alleged unlawful use and provision of Starlink services in South Africa. This comes after the uMkhonto weSizwe Party (MK Party) alleged that Starlink was offering its services in South Africa without a licence. ICASA has also engaged SpaceX for further clarity and has deployed inspection teams on the ground to investigate the matter further. ICASA spokesperson Milly Matlou said: 'ICASA has launched an investigation into the alleged unlawful use and provision of Starlink services in SA. We have also engaged SpaceX for further clarity and have currently deployed inspection teams on the ground to investigate the matter further.' According to ICASA, its investigation will determine whether Starlink has indeed breached South African laws and regulations. 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 ✕ Ad loading If found guilty, the company could face enforcement actions, including fines or even a ban on its operations in the country. 'Should the investigation yield any breach with regulatory and legislative frameworks, the Authority will explore the applicable enforcement actions within its disposal, which may include, among others, lodging a formal complaint with the International Telecommunication Union (ITU),' Matlou said. 'To this end, ICASA has published a general notice under Government Gazette no 49777 reiterating that all entities offering electronic communications services within South Africa are required to comply fully with the applicable legislative and regulatory frameworks.' The MKP alleged that Starlink was operating in South Africa without authorisation, using a shadow entity called "ICASAsePUSH" to masquerade its operations. The party claimed that this constitutes a 'blatant' violation of South African telecommunications law and represents a direct affront to the country's Broad-Based Black Economic Empowerment (B-BBEE) framework. The party made the allegations during the Portfolio Committee on Communications and Digital Technologies meeting in Parliament on Tuesday. 'During that session, the MK Party directly challenged the Minister of Communications and Digital Technologies regarding his awareness of this operation. His professed ignorance was not only unacceptable but deeply troubling,' spokesperson Nhlamulo Ndhlela said. 'The MK Party will not tolerate the erosion of our legal framework by foreign profiteers or their local enablers. We categorically reject any attempt to circumvent B-BBEE laws under the guise of innovation or foreign investment.' Communications and Digital Technologies Minister Solly Malatsi has expressed his full support for ICASA's investigation, stating that it is the regulator's responsibility to manage both license applications and investigations. This will be the second time the ICASA investigates Starlink's dealings. In 2023, ICASA issued a notice, warning that it was illegal for anyone or company to use Starlink, as it doesn't hold a license to operate in the country. Cape Times
Eyewitness News
3 days ago
- Business
- Eyewitness News
Malatsi: Communications sector's proposed policy changes already provided for in law
CAPE TOWN - Minister of Communications Solly Malatsi has once again moved to defend proposed policy changes in the sector, saying he's not attempting to do anything not already provided for in law. Many believe the regulations are being designed to benefit foreign satellite company Starlink, the company of tech mogul Elon Musk. On Thursday, Minister in the Presidency Khumbudzo Ntshavheni, a former communications minister, said no discussions were had with Musk during government's visit to Washington last week. Malatsi has been at odds with political parties in Parliament this week - including the African National Congress (ANC), over regulations that would forego Black Economic Empowerment (BEE) requirements for communication operators in favour of equity equivalents. READ: Malatsi defends policy directive to ease company transformation targets and BEE requirements Responding to member's statements in the National Assembly on Thursday, Malatsi again sought to explain the move, telling the uMkhonto weSizwe (MK) Party that he was working within the prescripts of the Broad-Based Black Economic Empowerment (BBBEE) Act, passed during the administration of their leader, Jacob Zuma, in 2014. 'This is not some invention by a villager from Limpopo called Malatsi. It's there in the rules.' Answering questions at a post-Cabinet briefing earlier in the day, Ntshavheni also defended her actions as a former communications minister. 'We've never considered Starlink. I've never said that. I said South Africa considered developing or introducing satellite communication in the country.' Malatsi said the new regulations will create a more competitive environment for multiple operators.
IOL News
3 days ago
- Business
- IOL News
Short cuts can be costly, counterproductive and dangerous, Minister Malatsi
Communications and Digital Technologies Minister Solly Malatsi defending his ICT policy and denying affording special treatment for Starlink. He is pushing for the sector regulations to be "aligned" with transformation laws through equity equivalent investment options. Image: X/IOLGraphics If the BS by Communications and Digital Technologies Minister Solly Malatsi that his directive proposing the relaxation of the BBBEE regime had nothing to do with Elon Musk and his Starlink business didn't jeopardise the core of what South Africa is about I would have simply joined the many good, law-abiding citizens who simply laughed it off. But this is serious. Here we're talking about our Constitution, our noble and well-intentioned laws, our national honour and sovereignty, our post-1994 dispensation's foundation and so on. Malatsi's timing has been described as 'deeply unfortunate' by some, but I'd like to label it as very revealing about him and very cheap. Even primary school kids could see the minister's slip showing very plainly as he ran around like a headless chicken, somersaulting backwards and forwards to fling the gates open for the tech billionaire bully while still pledging support for our national transformation project. But all this sound and fury by the minister won't amount to much. His proposal may simply be rejected, as it has been 'roundly' repudiated by the parliamentary committee that summoned him to explain his actions. Which will bring all of us back to square one. Malatsi and his ilk may have been watching too much TV. Watching US President Donald Trump riding roughshod over everything he dislikes by sitting down and signing executive orders can be very tempting for any ambitious politician. But that's not how laws are made in functional democracies like our Mzansi. This is not to say the minister is simply crazy – like Trump and Musk. There's some method in his madness. He's trying to deal with an extremely challenging malady that has infected global trade and business in general and has had a fast-acting corrosive effect on the rules, etiquette, culture and other good things everyone used to take for granted. Thankfully, South Africa is still a democratic nation. The processes for law making and amendment are well known and still stand. And we generally take our sweet time before anything gets done. So, why rush now? My advice for the minister, or anyone wanting to quickly remove these hurdles standing in front of our good potential international investors would be to simply follow and trust the established processes. Short cuts can be costly, counterproductive and dangerous.
