Former communications minister Dina Pule sanctioned the controversial deal between the South African Broadcasting Corporation (SABC) and MultiChoice, worth R550 million, the City Press reports.
The paper, citing sources aware of the deal, says the deal is actually selling off the SABC's broadcasting assets to the pay-television company. The sources are concerned as to whether the contract complies with the Public Finance Management Act, and whether it gives MultiChoice access to the SABC's archive on an exclusive basis, it reports.
Both broadcasters have denied the claim relating to archives, while the department said the joint task team, appointed to examine the SABC's affairs, was looking into this claim.
Departmental spokesman Siya Qoza told the paper that Pule gave permission for the SABC to use MultiChoice to air its 24-hour news channel as long as the channel was supported through enough funding.
The deal the SABC has with MultiChoice stops the public broadcaster from transmitting its channels over an encrypted network. Qoza has not clarified what impact this will have on migration.
The Democratic Alliance's shadow minister of communications, Marian Shinn, has said clarity is needed on the deal to make sure it does not hamper migration.
Currently, discussions between broadcasters, facilitated by the department, to resolve the encryption impasse are at a sensitive stage.
Digital television was meant to turn on almost a year ago, but was delayed by a court battle over conditional access. The set-top box control encryption system is intended to protect the local decoder market, and prevent theft of boxes.
Etv took former minister Dina Pule to court over her decision to appoint Sentech to handle the issue of conditional access. The free-to-air broadcaster won its bid and the department later dropped its appeal against the ruling.
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