Independent Communications Authority Bill: discussion

Documents Handed Out:
Presentation to Portfolio Committee for Communications (see Appendix 1)
South African Communications Regulatory Authority Bill (PMG is attempting to obtain an electronic version of this document, please email [email protected] if you would like it forwarded to you)

SUMMARY
The Committee discussed the Independent Broadcasting Authority/SATRA merger Bill. Questions of clarity were raised on the Bill itself, with special focus being placed on the Selection Panel, and the submission of names by that panel to the President.

Members felt that their committee did not have an active enough role in the selection process of candidates to serve on the Council. The Director General reassured them stating that the committee was actively involved in that they were responsible for the appointment of persons to the Selection Panel to act on their behalf.

MINUTES
Mr Kekana (Chair) stated that there were two items on the agenda. First, the allegations of Professor Zulu about government interference in the SABC Board, and two, the SATRA/IBA merger Bill.

Allegations of Professor Zulu:
The Chair stated that Professor Zulu had forwarded his letters to Business Day to this committee. In the letters, Professor Zulu categorically stated that he had never said what the newspaper claimed, or even made any suggestion of interference by the government in SABC matters. It was decided that this matter would be closed.

SATRA/IBA Merger Bill:
The committee was briefed by Andile Ngcaba, Director-General of the Department of Communications on the South African Communications Regulatory Authority Bill (SACRA). In his presentation, Mr Ngcaba outlined the key provisions of the Bill which included the convergence of the broadcasting and telecommunications spheres, and the creation of a selection committee to provide for the appointment and workings of a reduced council.

Discussion:
(Q) Ms Smuts (DP) asked why it was decided to have a reduced council?

(A) Mr Ngcaba stated it was felt that a smaller council with broad expertise would be more efficient. He stated that after consultation with Mr Alan Darling, a composite structure of five to seven members would ensure that the business of the council would be accomplished more quickly. He further stated having a larger council would create problems, such as an increased workload and difficulty in agreeing on decisions.

(Q) Ms Vos (IFP) asked how the new Authority would be financed?

(A) Mr Ngcaba replied that the budget for the Authority will come out of the Department of Communications budget vote, but that each will get audited separately and present reports to Parliament separately. He also stated that monies raised from taxes, or licensing fees would not be used to finance the Authority, because it is the policy of government that such money go to the National Revenue Fund.

(Q) Ms Smuts (DP) asked what sections are being repealed?

(A) Mr Ngcaba stated the titles of the clauses that are being repealed or amended in the Independent Broadcasting Act, 1993, the Telecommunications Act, 1996, and the Broadcasting Act, 1999 as outlined in the Schedule of the SACRA Bill.

(Q) Ms Smuts (DP) asked what are the legal consequences of ending contracts with members of the existing Boards before their term is up?

(A) Mr Ngcaba stated that the Labor Relations Act, and the Public Entities Act outline what actions must be taken in dealing with the termination of existing Boards due to new legislation, and as such, there would be no legal consequences. He also stated that they will have to negotiate severance packages for those members who will not be appointed to the new council.

(Q) Ms Vos (IFP) asked why is Parliament excluded from the process of appointing the Council and why is all the power given to the President? Ms Vos suggested that Parliament should submit a list to the President.

(A) Mr Ngcaba stated strongly that Parliament was not excluded. He argued that it was up to the Portfolio Committee to decide on the number of names that should be on the list submitted to the President, and that the power to change that number was in the legislature's hands. He also argued that the Bill gives power in section 4(4) for the Portfolio Committee to appoint a Selection Panel to compile a short-list of candidates on its behalf. He further stated that members of the portfolio committee could be members of the Selection Panel.

(Q) Mr Abrahams (UDM) asked what criteria will the portfolio committee use to appoint people to the Selection Panel? Further why cannot the Selection Panel submit the names of candidates back to the Portfolio Committee before they go to the President.

(A) Mr Ngcaba ensured that a list of requirements stating qualifications and criteria would be put forth, after they had been advised by the State Law Advisor. On the second question, Mr Ngcaba stated the purpose of the Panel was to delegate responsibility away form the committee rather than adding to it's workload. He reiterated that the intention of the Selection Panel was to work on behalf of the committee, but that if the committee chose to, MPs could sit on the Selection Panel.

Ms Vos (IFP) suggested that an extended list of names be submitted to the President, so that if a councilor can no longer perform their function, the next person on the list is automatically appointed.

Mr Ngcaba stated that a system of ranking councilors would be problematic for several reasons. One, the person who is next to be appointed may no longer want to fulfill the position, and secondly, ranking of councilors would imply that some are more valuable than others, and in order for them to work effectively, they must all be seen as equal.

No further questions were asked. The meeting was adjourned.

Appendix 1:
PRESENTATION TO PORTFOLIO COMMITTEE FOR COMMUNICATIONS
SOUTH AFRICAN COMMUNICATIONS REGULATORY AUTHORITY BILL

Andile Ngcaba 22 February 2000

KEY PROVISIONS OF THE BILL
· To provide for the merger of the current regulators [SATRA and IBA]
· To provide for the appointment and workings of the reduced council
· To provide for the transfer of personnel and assets from the current regulators to the
new regulator
· The remaining provisions of the underlying statues, remain unaltered

REASONS FOR NEW BILL
· In the previous millennium, broadcasting and telecommunications were separate
definite spheres of operation
· Convergence of technologies makes this clear distinction disappear
· A new merged regulatory authority was therefore necessary
· About two years ago Cabinet resolved to merge the two regulators

PROVISIONS OF THE BILL

Clause 1
· This contains the customary definitions most of which emanate from the underlying statutes

Clause 2
· This stipulates the objects of the Act, namely to regulate broadcasting telecommunications through
an independent authority, as required in terms of section 19201 the Constitution

Clause 3
· This clause establishes the South African Communications Regulatory Authority

Clause 4
· This clause deals with the establishment of the Council, which consists of 5-7 members,
one of whom is the Chairperson
· The procedure for appointment follows that prescribed in the underlying statutes (which are repealed)

· The difference between this Bill and the underlying statutes is that a selection
committee is appointed by the Parliamentary Portfolio Committee, who will conduct the
public hearing and make recommendations to the President for the appointment of
Councillors

Clause 5
· Qualifications for appointment as councillors, are prescribed in this clause. It follows the provisions of the underlying statutes, which are repeated

Clause 6
· The terms of office is prescribed as 4 years, and a councillor may be re-appointed

Clause 7
· This deals with the removal from office of councillors

Clause 8
· Remuneration of councillors is determined by the Minister with the approval of the Minister of Finance

Clause 9
· Deals with the filling of vacancies that may arise during the term of the council

Clause 10
· Meetings of the council are regulated in terms of this clause

Clause 11
· Prescribes the procedure at meetings of the council if a councillor has a conflict of interest

Clause 12
· It deals with the validity of proceedings in the event of technical problems, such as a vacancy
in the council

Clause 13
· Stipulates that the new authority must perform the duties of the former authorities, prescribed
in the underlying statutes

· It provides that the Authority operates in terms of the provisions of the Public Finance Act, 1999

Clause 14
· Provides for the appointment of staff to assist the Authority in the performance of its tasks

Clause 15
· Financing of the Authority
· The Authority is financed from money appropriated from Parliament in terms of the
Departmental Budget
· Income must he paid into the National Revenue Fund
· The CEO is the accounting officer
· The Authority must keen proper books of all transactions
· Accounts of the Authority must he audited by the Auditor General

Clause 16
· Council must submit an annual report within three months of the end of the financial year
· The Minister must table a copy thereof in Parliament within 30 days of receipt

Clause 17
· Deals with the establishment of standing and special committees to assist the council

· This includes the Broadcasting Monitoring and Complaints Committee, to be chaired by a
councillor

Clause 18
· it deals with the dis-establishment of the IBA & SATRA and for the phasing out of the terms of office of the councillors of the former authorities

Clause 19
· it deals with the transfer of staff of the former authorities to SACRA

Clause 20
· it deals with the transfer of assets, rights, liabilities & obligations of the former
Authorities to SACRA

Clause 21
· Deals with pending manners which the former Authorities had to attend to

Clause 22
· Repeals laws as specified in schedule 1
· It deals mainly with the repeal of certain sections and amendments of other sections of
the underlying statutes

Clause 23
· Provides that in the event of a conflict between this Act and an underlying statute, this Act
shall prevail
.
Clause 24
· Provides the title of the Act, which will come into operation on a date to be fixed by the President by proclamation in the Gazelle

THANK YOU