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No worries over SNO delay, MKMVA shares

Paul Vecchiatto
By Paul Vecchiatto
Johannesburg, 12 Aug 2005

The latest requirements by the Department of Public Enterprises are not insurmountable and the CommuniTel shares held by ANC military veterans` association is not an area of concern, says Mike van Den Bergh, MD of Gateway Communications.

Van den Bergh was speaking yesterday in reply to questions put to him by Democratic Alliance MP Dene Smuts. Smuts asked him to explain what impact the latest requirements put to the Second National Operator (SNO) by the Department of Public Enterprises would have. She also queried the meeting held in the ANC head office with regard to the Umkhonto we Sizwe Military Veterans` Association (MKMVA).

Van den Bergh was in parliament to address the Portfolio Committee on Communications as chairman of the Communications Users Association of SA (CUASA) on the draft Convergence Bill. He answered the questions in his personal capacity and not as a spokesman for any of the organisations he represents. Van den Bergh is also MD of UK-based Gateway Communications, which is part of the CommuniTel consortium, which has a 12.5% share in the SNO.

The first question asked by Smuts, related to the Sunday Times article this past weekend that the final signing of the SNO deal was held by Public Enterprises minister Alec Erwin. This is because he wanted "pre-emptive" rights over the sale of Transtel and Eskom shares and to preserve government`s rights to and the usage of Transtel and Eskom`s servitudes (rights of way) to the SNO.

The Department of Public Enterprises is the controlling department regarding electricity utility Eskom and transport conglomerate Transtel - both of which have extensive communications facilities, including fibre optic, which is earmarked to be absorbed into the SNO.

"We had thought that we had reached a deal. But, the Department of Public Enterprises`s new requirements, while not insurmountable, have served to merely delay the process," Van den Bergh said.

These requirements have added to the continuing delays in the licensing of the SNO, which is dependent on its business plan being approved by Communications Minister Ivy Matsepe-Casaburri.

MKMVA`s shares

Smuts` second question related to the questions raised by other reports regarding MKMVA Investment Holdings`, (which is supposed to represent former members of the ANC`s military wing, Umkhonto we Sizwe) meetings at Luthuli House with government ministers.

Van den Bergh said: "One may assume that the credibility questions (concerning broad based black economic empowerment) were raised and answered then...this is not an area to be concerned with or to be worried about."

Gateway Communications is a 25% shareholder along with MKMVA in CommuniTel. The remaining half is split between Telecomm Namibia and Premier Contracts Agency.

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