Malatsi stands his ground on the proposed ICT policy directive

Minister of communications and digital technologies Solly Malatsi says he will not be bullied or pressured into serving political interests linked to his party, the DA.

This comes after Malatsi was criticised in parliament on Tuesday over his decision to gazette a policy directive, the Equity Equivalent Investment Programme (EEIP), which proposes to relax the longstanding requirement that foreign ICT investors must hold at least 30% equity in partnership with historically disadvantaged blacks in SA.

The gazetting of the proposed policy change led to critical remarks that the new directives appeared to favour Elon Musk's internet satellite, Starlink. 

Some MPs went as far as calling for his resignation.  

Malatsi said there was a narrative floating around that, as a DA member, he is acting to benefit specific companies. He also rejected that his decision was influenced by President Cyril Ramaphosa's delegation that visited US president Donald Trump in Washington last week.

"That is completely false. I am not being bullied by anyone, nor would I allow that to happen. I act on principle and within the law. Our internal timeline was always mid-2025. We are on track. There’s no conspiracy here [linked to what happened in the US]," he said. 

MK Party chief whip Colleen Makhubela, however, questioned why Malatsi should still keep his job, accusing him of misusing the State Information Technology Agency (Sita). 

"You are now misusing Sita, an agency under investigation for corruption and dysfunction, to push regulations that are illegal and unconstitutional. That GNU delegation in Washington had no answers; it was a vote of no confidence in your leadership," she said.

Makhubela said the directive was rushed, lacking good judgment. 

"Now you turn around and issue a gazette just 48 hours later...unlawful, rushed, and showing poor judgment. Minister, you’ve affirmed that you’re out of your depth. This gazette denies historically disadvantaged people a constitutional right to participate in the ICT economy," she said. 

In response, Malatsi said the decision to retain ministers was only up to the president. 

“The decision to retain ministers lies with the president. I serve at his pleasure within the GNU. As for the gazette, we must allow the public comment period to unfold. No one pressured me into this; the process began long before last week’s events. Regarding my ability to do this job: I believe I am capable, and I am not considering resignation," he said.

ANC chairperson Khusela Sangoni raised a concern that the directive could dilute the purpose of the ownership requirements. 

"Now that you’ve removed the 30% ownership requirement, have you considered the implications for shareholders, especially black shareholders? You said equity equivalents are not new, but why take away one of the few mechanisms that enable structural economic transformation?

"Ownership is the one thing that actually shifts power, and it’s the only part they don’t already have to do by law...So, minister, why ask South Africans whether to take away the only transformative tool we have?” Sangoni asked. 

However, Malatsi said they were not undermining transformation or the requirements. 

“The equity equivalent investment mechanism is not a new invention, it is already recognised under the BB-BEE Act and has been approved by the department of trade, industry and competition," he said.

The public comment period on the directive remains open for 30 days.

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