Nexus Connexion, the empowerment group expected to be awarded a 19% stake in the second national telephone operator (SNO), has shown little interest in calls for it to invite losing bidders to participate in its consortium.
At the end of July, the Independent Communications Authority of SA (ICASA) recommended that the government award the 19% empowerment stake in the SNO to empowerment group Nexus Connexion. Although ICASA chose the consortium as its preferred bidder, the final decision is up to communications minister Ivy Matsepe-Casaburri.
Now at least one losing bidder is publicly lobbying her for inclusion in the potentially lucrative new operator.
The SA Communications Forum, an empowerment organisation headed by former ICASA councillor Eddie Funde, says Nexus should invite all the losing bidders to participate in its consortium.
"In so far as the final decision still rests with the minister, we call on her, should she decide to accept the ICASA recommendation, to add this crucial attempt at inclusiveness and optimal empowerment to the list of conditions already articulated by ICASA," the forum said in a statement yesterday.
ICASA recommended Nexus on the condition that it shows it can raise R2 billion, if the need arises, and that it significantly increases its number of shareholders.
The forum claims it was the organisation that ensured the 19% stake was set aside for empowerment and professes disappointment that its bidding vehicle, OneTel Limited, failed to sway ICASA. OneTel was to present a united front, including all potential bidders, for the stake to "avoid a winner-take-all" situation. But the attempt failed with six other bidders entering the fray against it.
The forum says it was always ready to take the losing bidders on board should it win and now it wants Nexus to "extend the same olive branch" to it and the other bidders.
Nexus was not keen to comment on the suggestion and clearly has little interest in doing so.
"We don`t want to be dragged into a debate," says consortium head Kennedy Memani. "The process was set up and we complied with it. Let`s just say we were part of the same process as the forum and OneTel, and leave it at that."
The forum statement also raises the spectre of legal action around the process; the kind of challenge that tied Cell C`s third cellular licence up in court for more than a year.
Some other losing bidders are seeking legal advice, the forum says. "For the record, we know that there are possible legal problems with ICASA`s reasoning but we make this call for inclusiveness as opposed to protracted legal battles for the sake of our country and its people and the development of our sector."
It is not known when Matsepe-Casaburri will announce her decision on the ICASA recommendation.
Related stories:
No SNO this Christmas?
Nexus 'won`t be passive investor`
Share