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Kekana`s appointment `unhealthy` - CUASA

By Rodney Weidemann, ITWeb Contributor
Johannesburg, 07 May 2003

The appointment of Nkenke Kekana, the former chairman of Parliament`s communications portfolio committee, as a Telkom group executive has sparked fears that he is likely to wield unhealthy legislative and lobbying influence in favour of the monopoly.

The Communications Users Association of South Africa (CUASA) says Kekana`s appointment as Telkom group executive for regulatory and public policy threatens competition.

"While we respect an individual`s right to work for whomever they choose, we do question the wisdom of a key political figure moving directly into the private sector in a role such as this," says CUASA executive committee member Ray Webber.

"This is not a good move for competition in SA as it is possible that Kekana`s contacts within government and the portfolio committee will wield tremendous influence on regulatory and policy issues in favour of Telkom."

Telkom has refused to comment on the views expressed by CUASA, other than to say that Kekana will be an asset to the organisation.

Webber says: "How much longer must business and consumers suffer before government wakes up and recognises Telkom`s dirty tricks for what they really are, and what must happen in SA for government and the communications minister to cease dilly-dallying around the SNO [second national operator] process and implement real competition for the good of the nation?"

The move, which saw Kekana replace Victor Moche, was announced last month by Telkom`s CEO, Sizwe Nxasana, who said at the time: "Kekana brings a wealth of experience in telecommunications policy and regulation ...and will help ensure that Telkom maximises shareholder value and maintains its leadership positions."

Ewan Sutherland, executive director of the International Telecommunications Users Group, says that in these circumstances the international norm would be for a quarantine period to be established.

"A famous case was that of Martin Bangemann, who was European Commissioner for the Information Society. He had hardly left office when Telefonica de Espana announced he was to join its board, until the huge public outcry resulted in a delay being imposed, and he ended up not joining Telefonica."

Sutherland also questioned how long Kekana had known about his move, as this could raise "severe doubts" about his decision-making in previous months, or even years.

"It`s generally understood in the industry that one of Victor Moche`s key roles at Telkom has been to influence the political leadership so as to receive favourable policy, regulatory and legislative results for the monopoly," says Webber.

"While there is nothing uncommon about this kind of lobbying, we feel that Moche has always been an `outsider` in his attempts to curry favour with government and the so-called independent committees.

"Kekana, on the other hand, has been involved in the ICT sector for the past 20 years, has been a member of Parliament since 1994, and has participated in the formulation of major telecommunications and broadcasting legislation, as well as serving as the chairman of the communications portfolio committee in the National Assembly since 1999."

Webber believes this makes Kekana an "insider" who will wield far too much political influence and that this situation is likely to unbalance what is often a fragile relationship between Telkom and its corporate and consumer clients.

Furthermore, says Webber, Kekana has - in his capacity as the chairman of Parliament`s communications portfolio committee - hosted many public hearings on communications issues.

"CUASA and other organisations that are dedicated to the protection of business and consumers from unrepentant monopolies such as Telkom have been obliged to open their cards to him in terms of their goals, policy and strategy," he says.

"Now we find that, in essence, the referee in the telecommunications playing field has been `bought` by the opposition, and it doesn`t matter if the referee is replaced, because Kekana is likely to have the political power and influence to sway their decisions anyway."

Webber says CUASA continues to call for real competition in the sector, which will enable general development, and open doors to new and existing business and much-needed employment for South Africans.

Related stories:
Kekana to replace Moche at Telkom

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