Clarity sought on ‘missing' Broadband Infraco entity

1 March 2015

I have written to Minister Siyabonga Cwele asking for clarity on the fate of state-owned company, Broadband Infraco, which was recently transferred to his department from Public Enterprises but has now vanished from the books of government. 

The fibre cable network company is not listed in Budget 2015, apart from a brief mention of its enabling legislation in Vote 32, Telecommunications and Postal Services.

While Broadband Infraco has not received transfers of operating funds from its previous department as it generates its own income, it did receive a capital injection at startup phase and, in Budget 2014, it was stated that investment would have to be made to upgrade its infrastructure if it was to compete with other network companies.

In Budget 2015, the company and its activities are noticeably absent from the chapter on entities that report to the Department of Telecommunications and Postal Services. Its only mention is the name of its enabling legislation among other Acts applicable to the department.

This absence will further fuel speculation that the company (a non-core government asset) is to be sold, and if public speculation proves to be true, the sale could be to JSE-listed Telkom. Government has been vocal about selling non-core assets to raise funds and Broadband Infraco's omission from Vote 32 could be the signal that its sale is imminent.

In the interests of staff stability and certainty in the Information and Communications Sector, I appeal to Minister Cwele to clarify the situation as soon as possible.

Statement issued by Marian Shinn MP, DA Shadow Minister of Telecommunications and Postal Services, March 1 2015

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