Comms dept keeps grip on Telkom stake

The Department of Communications has rejected calls by the Democratic Alliance (DA) to transfer government's 38% shareholding in Telkom to the Department of Public Enterprises.

Reacting to a publicity campaign against Telkom by the Telecoms Action Group, DA spokesperson on communications Dene Smuts renewed the party's call that "the ministry responsible for broad liberalisation policy should not have the conflicting interest of maximising the state's shareholding interest in the dominant incumbent".

"One step the president should consider is to transfer the shareholder management of government's 38% stake in Telkom to the public enterprises minister... Since we first suggested such a step, minister [Alec] Erwin has assumed the role of Telephone Minister Number Two, with his plans for Infraco. In doing so, whatever the merits of the plan, he has displayed concern for basic access costs and their effect on the economy," Smuts said in a statement.

This follows a similar call by the DA in Parliament last year.

However, communications department spokesman Albie Modise rejected the call, saying it is irrelevant which government department holds the shares. The warehousing of these does not influence the formulation of telecoms policy, he claims.

"We can transfer the shares from one department to another, but these remain government's shares and it makes no difference who holds them."

Modise stresses the department is looking after the interests of the economy. He points out that the department played a key role in the formulation and implementation of the Electronic Communications Act of 2006, as well as the establishment of Neotel, the second national operator.

Government has no immediate plans for its Telkom shareholding and it will remain in the communications department's hands, Modise adds.