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LABOUR & PUBLIC ENTEPRISES SELECT COMMITTEE
12 November 1999
SENTECH AMENDMENT BILL: BRIEFING
Documents handed out:
Sentech Amendment Bill [B52-99]
Mr Z Makalima from the Department of Communications gave a slide presentation on the background and reasons for the Sentech Amendment Bill [B52-99] (See Appendix 1).
Questions by committee members.
What is the role of IBA in the future plans of Sentech?
Does the restructuring of SENTECH fall within the ambit of the National Framework Agreement (NFA)?
What is your relationship with IBA as they claim that they were not properly and officially consulted?
Mr Z Makalima: The role of IBA will be to regulate the market, as all broadcasters must have an IBA license. Sentech is a monopoly, and for them to survive the convergence, they must be put in a position for multimedia services. They are working on convergence issues within the Department, as money is required to position a company.
The restructuring is not an NFA process, but a vehicle Sentech will use to privatise, once this law is enacted. This will therefore follow the NFA process.
This legislation is only a facilitator if the government decides to sell part of Sentech. Whoever decides to buy shares in Sentech, must comply with the IBA.
The chairperson read the motion of desirability in terms of the internal rules. The bill was formally considered, and was agreed to with no objections.
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