Optis Telecommunications, one of the original bidders for a 51% shareholding in the second national operator (SNO), has thrown a spanner in the SNO licensing works by seeking an urgent interdict against the minister of communications.
Minister Ivy Matsepe-Casaburri`s office, the Independent Communications Authority of SA (ICASA) and the six parties involved in the SNO have been cited as respondents to Optis` urgent application to stop the minister from announcing the recommended SNO licensee on Friday, 17 September.
Optis says it wants the announcing of the licence to be delayed, pending the outcome of the judicial review that was originally brought by black economic empowerment firm Nexus against the minister on her decision to allow two previously rejected bidders CommuniTel and Two Consortium 13% stakes in the SNO.
Nexus had originally contended that the process by which this arrangement had been made was flawed as neither had been recommended by the regulator ICASA.
Nexus suspended its legal action on the understanding that the minister would give it two weeks` notice of any final announcement, although it reserved its right to take up the matter again.
Bradley Allison of Ian Levitt Attorneys, which acts on behalf of Optis, says: "We want to know how the decision was reached to proceed with the process. We want to know what deal was struck with Nexus that allowed them to continue in the process that they say is flawed."
Allison says Optis wants to be part of the judicial review because if two of the previously rejected bidders were given shareholdings, then the possibility is that his client has been unfairly prejudiced.
"The process was clearly flawed. The last announcement from the minister`s office states that ICASA will award the licence only if certain conditions and structures are in place," he says.
Optis` actions, which could be heard before the Supreme Court in Pretoria on Thursday, 16 September, are in terms of the Protection of Information Act.
Allison says he has received notification that the minister will oppose the action and that Nexus will "abide by the court`s decision". He has yet to hear from the other respondents.
Alan Friedland, along with his 20-year-old son Warren and daughter Monique, control Optis. Two years ago, when the initial SNO public hearings took place, a rival bidder accused Optis of plagiarising its presentation. Optis then claimed it had a Chinese company, Shanghai Telecoms, as a 6% partner in its consortium.
Matsepe-Casaburri`s SNO announcement on 26 August stated that a new company, Sepco, would hold 51% of the equity share capital of the SNO. A new investor will hold a 51% share of Sepco, with CommuniTel and Two Consortium each holding 24.5%.
Transtel and Esi-Tel will together hold 30% of the equity share capital of the SNO, and Nexus, the preferred empowerment partner, will hold 19%.
The new financial investor would control the board of Sepco, which would in turn control the SNO board.
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