The Department of Communications (DOC) has transferred funds to the Independent Communications Authority of South Africa (ICASA) after the regulator threatened legal action, accusing the department of withholding its dues.
This week, the regulator held a media briefing where acting chairperson Keabetswe Modimoeng said the authority's council noted with serious concern that its first tranche payment had been unlawfully withheld by the DOC, even though National Treasury had already released the budget allocation for the 2019/20 financial year as approved by Parliament.
According to Modimoeng, the effect of withholding the payment to ICASA has dire consequences, to the extent that the authority is unable to perform its mandate of regulating the sector in the public interest.
City Press on Sunday reported that a war had broken out between the regulator and communications minister Stella Ndabeni-Abrahams, who was being accused of meddling in the independent authority's work and withholding its funding by refusing to approve its annual performance plan (APP).
The DOC issued a statement saying Ndabeni-Abrahams noted with concern media reports and the subsequent media briefing held by ICASA in respect of the non-transfer of funds to the regulator, allegedly due to its 2019/20 APP not being approved by the minister.
"At the outset, it must be categorically stated that the minister at no point issued an instruction against the transfer of funds to ICASA owing to its APP pending approval," the DOC says.
It points out the minister accordingly advised ICASA to rectify certain issues contained in its APP and submit a revised version by 30 April.
"It is common cause that the PFMA [Public Finance Management Act] and related National Treasury regulations govern the approval of APPs and budget allocations. National Treasury regulations require the accounting authority (council of ICASA) submits an APP for approval by the relevant executive authority (the minister) who subsequently tables it in Parliament."
The department adds it must be noted that funds transfer from a government department to an entity fall within the competency of the department's accounting officer (director-general).
The ministry has since engaged with the accounting officer and the requisite funds have been transferred to ICASA.
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