This state-owned company has “vanished”
The Democratic Alliance says it has written to Minister of Telecommunications and Postal Services Siyabonga Cwele asking for clarity on the fate of state-owned company Broadband Infraco.
According to the DA, Broadband Infraco was recently transferred to the Department of Telecommunications and Postal Services, but has now vanished from the books of the government.
“The fibre cable network company is not listed in Budget 2015, apart from a brief mention of its enabling legislation in Vote 32, Telecommunications and Postal Services,” said Marian Shinn, DA Shadow Minister of Telecommunications and Postal Services.
While Broadband Infraco has not received transfers of operating funds from its previous department as it generates its own income, it did receive a capital injection at startup phase.
“In Budget 2014, it was stated that investment would have to be made to upgrade its infrastructure if it was to compete with other network companies,” said Shinn.
“In Budget 2015, the company and its activities are noticeably absent from the chapter on entities that report to the Department of Telecommunications and Postal Services.”
“Its only mention is the name of its enabling legislation among other Acts applicable to the department,” she said.
This absence, said Shinn, will further fuel speculation that the company – a non-core government asset – is to be sold. “If public speculation proves to be true, the sale could be to Telkom.”
“In the interests of staff stability and certainty in the Information and Communications Sector, I appeal to Minister Cwele to clarify the situation as soon as possible,” said Shinn.
It has been speculated that Broadband Infraco may be up for sale.
Infraco was seen a key player in government’s quest to provide broadband access and connectivity to underdeveloped and under-serviced areas and a key driver to economic growth through increased broadband penetration.
However, President Jacob Zuma announced during his State of the Nation address that Telkom has been designated as the lead agency to assist with its broadband roll-out initiative.
More on Broadband Infraco
Broadband Infraco up for sale?
No signs of profit at Broadband Infraco
Loading ...