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Communications minister Solly Malatsi. Picture: GALLO IMAGES/OJ KOLOTI
Communications minister Solly Malatsi. Picture: GALLO IMAGES/OJ KOLOTI

Communications & digital technologies minister Solly Malatsi knows multinationals that are prohibited from selling equity by global practice qualify for recognition of their equity equivalent contributions in the place of the sale of assets (“Rules for foreign telecom operators not aimed at Starlink, Malatsi tells MPs”, May 27).

Malatsi also knows the department of trade, industry & competition is the custodian of policy that drives the wheels of these contributions, for such entities to fulfil the priorities of broad-based BEE. Strangely, Malatsi chooses to reinvent the wheel.

Ideally, Starlink would apply for exemption if it’s unable to sell a 30% stake to a broad-based group of black investors. It could thereby append a programme outlining how it would contribute towards building a competitive and sustainable black-owned satellite service ecosystem.

It clear that Malatsi is manoeuvring to offer a preferential mechanism to waive Starlink’s obligation through a pointless policy directive.

Morgan Phaahla
Ekurhuleni

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