Government’s ICT job shock
Only 150 jobs were created through ICT related projects by mid-2012/13, against the annual target of 17,322, as funds were reprioritised away from these projects towards other spending pressures within the Department of Communications.
This revelation comes in the form of a mid-year performance status for the communications sector, highlighted in the Medium Term Budget Policy Statement on Thursday (25 October).
Government admitted that the lack of achievement in broadband penetration within the first six months of the financial year is due to delays in finalising the national broadband strategy.
“The Department (Communications) is currently reviewing the broadband policy in consultation with all related industry stakeholders,” it said.
A figure of zero was put in the column for the percentage of broadband penetration achieved in the first six months of 2012/13 (April/September), against a 7% projection as published in the 2012 Estimates of National Expenditure.
“Similarly, no ICT SMME Hubs have been created in the provinces due primarily to human resource capacity constraints,” Treasury said.
It noted that the Communications Department has achieved 60% household coverage of digital television transmission infrastructure thus far, adding that state owned infrastructure group Sentech has experienced project delays in rolling out infrastructure. The ENE projected target was put at 80%.
According to Treasury, Sentech’s failure was as a result of the Minister of Communications’ announcement of the adoption of the DVBT2 technology which meant that Sentech had to first upgrade the already rolled out infrastructure before it could continue with new infrastructure rollouts.
The Digital Terrestrial Television (DTT) project rollout programme is being accelerated to be ready for the full switch-on by December 2013.
Treasury highlighted the success of the rand reduction in per minute cost of mobile phones and fixed phones per year, as set out in the call termination rates regulations, gazetted on 29 October 2010.
This reduction relates to interconnection rates, which are the fees the mobile operators charge each other and other network operators to carry calls onto their networks.
Treasury said that the targeted number of young people participating in the National Youth Information Society and Development Programme per year was exceeded, to 650 from a projection of 500, due to a “fruitful” partnership with the University of Johannesburg’s Centre of Small Enterprise Development.
The government body stressed however, that no e-cooperatives were established within the first half of the year against a target of 60. This, it said would have increased the entry of youth owned small enterprises into the ICT sector, due to reprioritisation within the Communications Department. Treasury added that funds have been shifted towards this function.
Treasury went on to say that no community radio stations were provided with broadcasting infrastructure (target of 5) to date, due to tender documents delayed (unapproved) by the departmental Bid Adjudication Committee.
“There is a dispute regarding performance and payment for the services in terms of the contract between service providers and the department for work done on Community Radio Stations,” it said.
Treasury added that negotiations have failed and the parties are proceeding with mediation.
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