The deputy communication minister condemned Malatsi's gazette.
Deputy Minister of Communications and Digital Technologies, Mondli Gungubele, has publicly criticised fellow minister, Solly Malatsi, following the latter’s contentious policy directive aimed at easing a Starlink deal in South Africa.
On Friday, Malatsi issued a formal policy direction instructing the Independent Communications Authority of South Africa (Icasa) to reconsider its regulations regarding the standard 30% local ownership rule.
The directive is effectively asking Icasa to recognise Equity Equivalent Investment Programmes (EEIPs).
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Under the Electronic Communications Act (ECA), foreign companies seeking a telecommunications licence in South Africa must allocate 30% of their shares to historically disadvantaged groups as part of the Broad-Based Black Economic Empowerment (BBBEE) programme.
This requirement has so far prevented billionaire Elon Musk’s Starlink from operating in the country due to its parent company, SpaceX maintaining a global policy of 100% ownership of its subsidiaries.
Malatsi’s ‘Starlink’ policy directive under fire
According to Malatsi, the directive garnered over 90% support from the public submissions.
His move has sparked backlash from both the ANC and the Economic Freedom Fighters (EFF), which previously threatened legal action.
In posts on X, Gungubele condemned the gazette, arguing it undermines South Africa’s transformation agenda and self-governance.
“The policy directives as gazetted by the minister of the department of communication and digital technology currently constitute an affront to this country’s dreams and ambitions of sovereignty as it pertains to both sustainable self-dependence and its security,” the deputy minister said on Sunday.
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He also warned of potential risks associated with the directive.
“The minister’s directives as they stand post divestiture of the ICT multinational in this country leaves us with the following risks: permanent dependence on foreign vendors, strategic skills stagnation, high long term costs, weak innovation and strategic vulnerabilities.”
Concerns were echoed by Songezo Zibi, chairperson of Parliament’s Standing Committee on Public Accounts (Scopa) and Rise Mzansi leader, who highlighted security implications.
“Elon Musk is a huge security risk (even for the US) in the broadest sense of the word. Example: He’s periodically threatened to cut access to Starlink on which the Ukraine military relies.
“He does this depending on his mood swings. We can’t have that Starlink thing here,” Zibi said in a social media post.
ANC MP calls for withdrawal of directive
ANC MP Khusela Sangoni-Diko, chairperson of the Portfolio Committee on Communications and Digital Technologies, called for the immediate withdrawal of the gazette.
She described the policy directive as “an affront to the centuries old fight for equity and redress by the black majority in this country”.
Sangoni-Diko contended that Malatsi lacks both the legislative and moral authority to “reverse the gains of democracy through this unilateral action”.
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She alleged that, following the SABC Bill saga, the minister again failed to seek Cabinet approval before gazetting the directive.
“This is not the first time that Mr Malatsi has demonstrated the antagonistic relationship he has with the law and due process; clear expression of his commitment to undermining existing law and Parliament as the oversight body.
“Mr Malatsi is once again reminded of the sanctity of the doctrine of separation of powers which enjoins that where there is a dispute on statutory interpretation, he may approach the courts for resolution or where he requires an amendment to legislation, that is the domain of the legislature,” the parliamentary statement reads.
‘BBBEE cannot be wished away’
Sangoni-Diko emphasised that transformation remains non-negotiable.
“This legislative requirement cannot be wished away or amended through regulations, but only through an act of Parliament.
“Further, it cannot be that BBBEE only matters so long as it is not an inconvenience to investors while the statistics clearly demonstrate that voluntary compliance from the private sector to drive black economic empowerment has failed,” she said.
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