Parliament Grills Malatsi Over Tech Policy That Sidesteps Transformation Laws

After introducing new rules that might exempt certain foreign corporations from South Africa’s standard transformation requirements, Minister of Communications and Digital Technologies Solly Malatsi found himself in hot water in Parliament.

Malatsi’s decision to publish gazette rules that exempt foreign companies from the Broad-Based Black Economic Empowerment (BBBEE) requirement that 30% of their ownership be held by historically underrepresented South Africans is the source of the backlash. According to many members of parliament, this is a big change that might weaken efforts to transform the tech sector.

MPs from both parties questioned Malatsi’s authority during a contentious portfolio committee meeting, claiming he circumvented the legislative process in order to benefit large tech companies. Sinawo Thambo, an MP for the Economic Freedom Fighters (EFF), told EWN that the minister was essentially attempting to change laws through regulation.

Thambo remarked, “I believe that speaks to the overstepping of executive powers.”

The ANC, or African National Congress, was equally critical. Concerning potential connections between Elon Musk’s Starlink and Malatsi’s Democratic Alliance (DA), MP Shaik Subrathie hinted that the new policy might be a favor for the tech billionaire’s satellite internet business.

“Have Elon Musk and Starlink had any discussions with the DA, the party he represents?” Subrathie asked sharply.

But Malatsi maintained his position. According to him, the purpose of the regulatory changes was to boost economic growth and facilitate new forms of transformation in the Information and Communication Technology (ICT) sector, not to favor any particular company.

He reassured MPs that Starlink was not exempt from these rules. “They are a part of a larger endeavor to modernize the ICT sector while simultaneously advancing economic inclusion.”

Additionally, he urged Parliament to wait for the public consultation process to conclude before rendering any final decisions regarding the gazette.

Malatsi’s position continues to face opposition as the controversy intensifies, with demands that he either amend the rules or resign. It is unclear if these new regulations will hold up to scrutiny, particularly in light of growing pressure from political parties calling for complete accountability.

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Sourced:EWN

Picture: X/@BuzinessX