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DA wants STB manufacturers' details

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 23 Sept 2015
The Democratic Alliance wants USAASA to divulge the details of the manufacturers selected to produce the first 1.5 million STBs.
The Democratic Alliance wants USAASA to divulge the details of the manufacturers selected to produce the first 1.5 million STBs.

The Democratic Alliance (DA) has filed a Public Access to Information Act (PAIA) application for the details of the manufacturers selected to produce 1.5 million set-top boxes (STBs) for the country's digital migration process.

This application follows the recent row between the DA and the Universal Services Access Agency of South Africa (USAASA) over one of the companies awarded a tender for the production of STBs.

USAASA awarded the R4.3 billion tender to manufacture STBs to 26 companies. The tender is part of government's plans to subsidise five million STBs for poor TV-owning households. Government announced last week that it had placed its first order for 1.5 million STBs with USAASA to the value of R1.2 billion.

However, USAASA has not revealed the names of the manufacturers selected to produce STBs as the country moves ahead with the first phase of switching from analogue to digital terrestrial television (DTT).

Marian Shinn, DA shadow minister of telecommunications and postal services, says she has repeatedly called for communications minister Faith Muthambi to reveal with whom the orders have been placed.

According to Shinn, her calls have been met with silence from Muthambi and hostility from USAASA.

"Industry sources have given me three company names and I forwarded these to USAASA CEO Zami Nkosi asking him to confirm or correct my information. He has remained silent on this issue."

Shinn adds: "The local production of STBs was meant to be a flagship government project to open the door for black SMMEs to gain a foothold in the electronics manufacturing sector and grow jobs."

Legit allocation?

Last week, Shinn questioned the legitimacy of manufacturer BUA Africa's participation in the tender process, claiming it was not one of the 26 South African companies awarded the manufacturing tender.

Shinn explains that if all was legit with the current STB production allocation then the names of the manufacturing companies would be shouted from the rooftops.

"Government secrecy just fuels suspicion that this programme is being corrupted," she says.

According to Shinn, the PAIA application requests the letters sent to the 26 companies that submitted bids for the tenders for the STBs approved by the USAASA board.

The application also requests any signed contracts and orders already issued by USAASA in terms of the tenders, as well as deposit slips for any monies paid to these companies; and copies of signed contracts, orders and deposit slips to any other service provider involved in any aspect of the DTT programme.

USAASA responds

In a statement, USAASA refuted claims of misconduct with regards to selection of BUA Africa Investments as one of the manufacturers for STBs.

The industry body notes it has undertaken the procurement of STBs in line with the National Treasury instruction note.

"USAASA will not and cannot under any circumstances, accept a deviation from the instruction note and has as such tabled a request to the Department of Trade and Industry (DTI) to test the veracity of the allegations made," according to the statement.

"All bidders were required to confirm through the completion of the SDB 6.2 form. These documents were submitted as per the requirements of the instruction note to the DTI," says USAASA.

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