"I don`t want a sector to be monopolised by people who do not look like me," said communications minister Ivy Matsepe-Casaburri, commenting on the issue of value-added network services (VANS) self-provisioning.
The minister made this comment this week towards the end of the debate on the Department of Communications` 2005 budget vote before the Parliamentary Portfolio Committee on Communications when she was outlining why VANS would not be allowed to self-provision.
Her comment left committee members, including those of her own African National Congress party, stunned.
"It was an extraordinarily silly thing to have said. But she laid it out on the table," says Dene Smuts, a member of parliament for the Democratic Alliance - the official opposition.
Among the other reasons given for not allowing VANS to self-provision was that it would affect the business case for the second national operator (SNO), the long-awaited competition to Telkom. During her budget speech, Matsepe-Casaburri said the SNO`s business plan is ready and the shareholders` agreement should be ready "within the next few days for the regulator`s approval".
In the minister`s reply during the debate on her budget, she also said she intended to adhere to the policy of managed liberalisation of the sector.
"A lot of people have compared us to other developed countries. We are not a developed country and we must do what is good for all the people," she said.
Later her aides pointed out that overall government strategy is aimed at social upliftment and alleviating poverty, and her comment should be seen in that context.
Internet Solutions MD Angus MacRobert says he is disappointed by the minister`s refusal to allow VANS to self-provision, but would not comment on her "look-like-me" outburst.
"We are disappointed, but we don`t think the door is closed and the situation is still very fluid."
Matsepe-Casaburri also faced criticism about her department`s performance from most of the committee members, including those of her own party. Among the complaints were the out-of-order public Internet terminals installed at post offices and the expense of installing the machines; rumours of transformation mishandling at the SA Post Office; and the lack of telephone services in rural areas.
She also answered allegations about favouritism in the form of "reserving" Thintana`s Telkom stake for her former director-general, now Dimension Data chairman designate, Andile Ngcaba.
"I waited until 15 minutes before the deadline to sign off the Thintana deal, but there were no other parties interested. The PIC [Public Investment Corporation] paid the money four minutes before I signed," she said.
In November, the Thintana consortium sold its 15.1% Telkom stake to the PIC for about R6.6 billion and Ngcaba`s Lion Consortium recently bought 3.37% of the Telkom stake.
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