Muthambi must come clean on R1.2 billion worth of STB contracts

The DA is concerned about Communications Minister, Faith Muthambi’s lack of clarity on the details of the R1.2 billion order of the first 1.5 million set-top boxes (STBs) earmarked for poor households. Her decision to withhold information concerning the price government is paying per STB, exacerbates suspicions of corruption around the entire manufacturing and assembly process. 

I call on her to openly – and without delay - give details on how much public money is being spent on these decoders and how the orders have been shared. 

Today I received replies to only two of the many questions I have asked the Minister on the STB programme and its costs. Both failed to give the specific details I asked for, such as the costs involved. 

It is untenable that the Minister is so secretive about contracting to spend an assumed R1.2 billion among only three of the 26 approved STB providers. This is about half the National Treasury approved funding for the STBs. STBs and anteannas were in 2014 estimated to cost about R800 per household. 

She confirmed the names of the three companies that share the order for the 1.5 million STBs as BUA Africa, CS Electronics and Leratadima. There has been no official media release on this since the orders were placed in August, which is surprising as this programme is the bedrock of the STB Manufacturing Sector Development Strategy of 2012 to enable emerging electronics firms to gain entry to the sector. 

The following are the questions the Minister has failed to answer:

- How many STBs and antennaes were ordered from each of the three suppliers;

- What are the costs of each of the items ordered;

- Whether any orders have been placed with suppliers other than the three named;

- What is the delivery date of the orders;

- Whether a non-disclosure agreement was imposed by her department on these suppliers;

- What payment has been made to each of these suppliers to date;

- When was this money paid to the suppliers, and

- What are the terms for the balance of payments? 

Instead of supplying specific answers the Minister answered in generalities such as: 

“The Minister is still in the process of enagement with the Universal Service Access Agency of South Africa (USAASA) regarding the purchase price of the STBs and accessories.” 

The DA will fight for transparency in all procurement deals done by the government, as  corruption not only undermines the progress of our economy, but the poor are always burdened by the suffering that follows corruption. 

Issued by Marian Shinn, DA Shadow Minister of Telecommunications and Postal Sevices, 5 November 2015