JSE-listed Altech's subsidiary, Altech UEC, and state signal provider Sentech have settled a dispute over access keys the manufacturer needed to fulfil an order to make decoders.
Towards the end of 2010, Altech UEC filed court papers in a bid to force Sentech to provide it with 70 000 Nagravision Embedded Conditional Access keys, which it needed to comply with Sentech's purchase order to make 70 000 decoders, for a total value of R31.8 million.
Sentech awarded the tender to Altech UEC in May 2009 and subsequently placed an order for 70 000 satellite integrated receiver decoders. The decoders were meant to be delivered with encryption security, as there had previously been security issues, says Altech UEC.
Sentech argued that it did not enter into a contract with Altech UEC and it could not honour the deal as this would be a breach of the Public Finance Management Act (PFMA).
Altech UEC MD Rodger Warren says the dispute was resolved to the satisfaction of both parties. “We have reached an agreement that is suitable to both parties and all issues have now been fully resolved.
“Sentech has been a client of Altech UEC since 1998 and we look forward to taking this relationship further, particularly in light of SA's digital migration programme.”
SA is moving to digital broadcast with the aim of turning the new signal on in the last quarter of this year. About 11 million households will need boxes to convert the broadcast for viewing on older sets, and the state will subsidise about 70% of five million boxes.
Related stories:
Sentechto defend Altech UEC lawsuit
Share
