The Congress of the People (COPE) is pleased to learn that North Gauteng High Court has ruled in favour of the Vodacom/Vodofone transaction, which would result in R22,5 billion inflow of capital into the economy. COPE however wishes to condemn and express its disgust at statements made by Cosatu in defiance of the ruling by the High Court. The suggested protest action by Cosatu against Vodacom as result of the listing on the JSE and sale by Telkom of 15% stake in Vodacom to Vodafone is childish and does not in any manner advance the interests of workers.
The current ANC leadership and its alliance partners had made a virtue out of their claimed struggle against "political interference" by those in the Executive their rallying cry before the elections, suggesting that when they ascend to power there will be visible change for the better in the manner of administration and relations with other institutions and stakeholders to the economy. The events concerning the Vodacom-Vodafone transaction show that there is change, but change for the worse. If there was interference before, it was not in such a sectional and narrow manner as we have seen in this regard.
The latest decision by ICASA to make a u-turn on their previous decision with regard to the transaction immediately after the new administration had come into office and certainly not co-incidentally after Cosatu had filed court papers asking for the ICASA's April 2009 decision to be set aside, raises serious questions about the regulators independence and could dash all hope and investor confidence that government has briefly enjoyed.
The Congress of the People (COPE) is dismayed at what is nothing but unbridled interference and a deliberate attempt to influence the Vodacom-Vodafone transaction for political and personal reasons. It is common knowledge that there were, thankfully, failed attempts made by the ruling party to influence the BEE component of the Vodacom-Vodafone transaction before shareholders finalised it. We call on the ANC and its alliance partners to demonstrate to national, local and foreign investors their respect for the independence of regulatory bodies such as ICASA , not only in words but in deed. COPE is concerned about the negative consequence of such developments on the standing reputation of the country as an investment destination, especially when the economy is undergoing severe strains and we together with the rest of the world compete for reduced potential inflows of capital.
The ANC inherits a government that is faced with the challenge of responding decisively to the negative effects of the global economic meltdown. We encourage the ANC and its alliance partners to direct their energies in finding lasting solutions to the current economic challenges facing the country and allow independent regulatory bodies to discharge their mandate without any undue political pressure and without fear and favour, instead of engaging in petty legal squabbles that only serve to compromise the country's reputation.
COPE urges Cosatu to approach issues directly relating to workers who are losing their jobs as a result of the slowdown in economic activity with the same vigour which it is challenging the Vodacom-Vodafone transaction, even after all relevant regulatory bodies had given it the go-ahead. The ANC government should equally be putting measures in place to stabilize the economy, to respond to the effects of global economic downturn and curb the massive job losses while building a firm base for sustained growth and competitiveness. It is time that the ANC and its alliance partners begin to demonstrate that indeed, they can do more in order to build a unified and prosperous South Africa.
Statement issued by the Congress of the People, May 18 2009
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