A new battle has begun between the Democratic Alliance (DA) and the Universal Service and Access Agency of South Africa (USAASA) over one of the companies awarded a tender for the production of set-top boxes (STBs) intended for South Africa's digital migration.
The row began when DA MP Marian Shinn questioned the legitimacy of manufacturer BUA Africa's participation in the tender process, claiming BUA Africa was not one of the 26 South African companies awarded a share of the R4.3 billion STB manufacturing and distribution tender awarded in April.
"While BUA Africa did attend the mandatory briefing for companies interested in tendering, the company's name is absent from the panel of winning company names that was briefly posted on USAASA's Web site in April," says Shinn.
USAASA, however, says the DA is trying to "cast aspersions" on the process and explained the confusion was due to a name change for the company. BUA Africa was originally named Namec Micronix and through that name was "appointed in the panel of service providers to supply and deliver STBs". USAASA says the company submitted a name document through following Companies and Intellectual Property Commission regulations and "this information was provided to Honourable Shinn".
"We are worried, as the agency, that there seems to be a malicious unfortunately uncalculated effort by the same source to punch holes in a process that was clean, fair and objective," says USAASA.
"First, she manufactured a story that 'some' possible tenderers did not see the tender because it was advertised during the holiday season; by this she was trying to derail our efforts to migrate this country, now these lies.
"We will not be intimidated by business people masquerading as MPs," USAASA said in a statement.
This was after Shinn called for government transparency on the process, which she says: "Has been enveloped in rumours of corruption by politically-connected individuals and enterprises - almost since inception."
Shinn says the programme is supposed to "encourage new black-owned companies to get a foothold in South Africa's electronic manufacturing industry and to create jobs".
"It is widely accepted that many of the groupings formed to take advantage of the programme have scant manufacturing experience or the facilities to be viable STB producers in the long-term," adds Shinn.
Chinese interference
USAASA did not, however, respond to allegations from the DA that BUA Africa is not as proudly South African as it seems, and in fact has a Chinese backer. The DA says it uncovered a press release from Chinese telecommunications giant Shenzhen Skyworth Digital Technology stating it had through "its factory in Johannesburg - co-owned by local company BUA Africa - successfully completed its first shipment, delivering a total of 70 000 STBs across South Africa".
The press statement by Skyworth Digital, published on 7 September, implies the STBs were produced in South Africa and not in China, and that the company is committed to boosting manufacturing in South Africa.
"Through partnering with local companies such as BUA Africa and increasing involvement in community initiatives and charities in South Africa, we have created hundreds of local jobs for underprivileged men, women and people with disabilities," according to Ang'elique Boissy, VP for global sales at Skyworth Digital.
The company says it chose to invest in the Johannesburg plant "to boost its presence in South Africa and contribute to the country's economy".
"The Johannesburg factory is the first in a series of new manufacturing centres Skyworth Digital plans to open as it looks to implement its 'edge manufacturing' concept across the business," according to the statement.
Skyworth Digital says it is the world's fourth-largest STB manufacturer and claims to be the "first company to pass South Africa's rigid governmental requirements for DTT STBs in the region".
Where the apparent 70 000 set-top boxes have gone is yet to be determined. USAASA CEO Zami Nkosi told ITWeb on Monday that the Department of Communications (DOC) has placed an order for 1.5 million STBs so far, but gave no indication of where the orders had been placed.
South Africa has been planning to migrate from analogue to digital terrestrial television (DTT) since 2008 but in June missed the International Telecommunication Union's deadline to turn off analogue broadcast and shift to a digital television era. Government has committed to subsidising five million poor TV-owning households by providing free STBs when DTT goes live.
USAASA had not responded to questions around Skyworth Digital's involvement in BUA Africa by the time of publication.
Instead, it chose to reiterate it had "embarked on a transparent process, overseen by an independent reputable consulting firm" and continued to mudsling at Shinn.
"We see a behaviour from the same source where government is criticised for failure to migrate the country but at the same time, the same source looks for every excuse you can find to derail the migration; next she is expected to run to the Public Protector."
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