
By KEDIBONE MOLAETSI
7 April 2025 –The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, has expressed serious concern at what appear to be attempts by Minister Solly Malatsi, to erode state capacity and thwart South Africa’s transformation laws. On 4 April 2025, Malatsi appeared in parliament to respond to questions for written reply from the State Information Technology Agency (SITA).
Khusela further said in his responses, Malatsi indicated that he was in the process of gazetting regulations that, in effect, would devolve powers from SITA to departments in a quest for what he calls “efficiency and cost savings”. She added that, while this intention demonstrates an appreciation of the challenges experienced by SITA’s client departments, the proposed regulations serve no purpose other than to worsen existing fragmentation, duplication and lack of integration in government services.
“Further, the proposed regulations clearly run afoul of both the letter and spirit of the SITA Act. The Act, as amended, prescribes that SITA’s purpose is to “provide information technology, information systems and related services to, or on behalf of, participating departments and regarding these services, act as an agent of the South African Government.
“Section 7(3) of the Act directs that “every department must, subject to subsection (4), procure all information technology goods or services through the Agency.” Nothing in the Act gives the Minister authority to circumvent legislation and devolve to departments functions allocated to SITA,” said Diko.
She said at a time when the country is still recovering from a period in which the capacity of the state was all but hollowed out, Malatsi should be seeking a return to that unfortunate trajectory should alarm them all. Diko said SITA was established with the express intention of achieving efficiencies and cost-effectiveness, so the Minister should be occupied with strengthening this critical agency, not crippling it.
“The service delivery challenges at SITA are not insurmountable. They require effective leadership prepared to put in the work, like many other Ministers, to rebuild and strengthen existing state institutions,” said Ms Diko.
“The critical programme of digitalisation of the state requires a strong SITA that coordinates and ensures standardisation and interoperability, an objective not currently being met,” she said.
Diko said devolving functions to departments merely multiplies the problem across silos, resulting in further duplication, fragmentation and lack of coherence in quest for a digitally transformed public service. She said the Portfolio Committee has announced its intention to hold an inquiry into SITA during the coming parliamentary term.
“The aim is to find viable and sustainable solutions to the challenges facing SITA, an exercise the Minister did not see fit to concern himself with, instead seeking to cut corners and circumvent the law.
“The Minister has also undertaken to launch another offensive against South Africa’s transformation laws governing his portfolio by seeking to bypass the Electronic Communications Act to appease recalcitrant business interests,” said Diko.
She said in a recent article in the media, the Minister announced his intention to issue a policy directive on the role of equity equivalent programmes in the ICT sector as a mechanism to accelerate broadband access. Diko said once again, Malatsi is seeking to cut corners and erode hard-won transformation goals.
“The Electronic Communications Act explicitly states in Section 9(2)(b) that the percentage of equity ownership to be held by historically disadvantaged groups must not be less than 30% for any potential licensee seeking to operate in the telecommunications, broadcasting or postal sectors in South Africa.
“Malatsi should know that when it comes to transformation in the ICT sector, the law is clear on compliance and that cutting corners and circumvention is not an option – least of all to appease business interests,” she said.
Diko said it appears these proposed directives and regulations are an attempt to undermine empowerment legislation by stealth and, should this be found to be the case, they will be fiercely opposed. She said the Portfolio Committee is on record affirming its support for the government’s efforts to attract investment and meet the National Development Plan (NDP) target of universal coverage by 2030.
“These imperatives must and can be achieved within the laws governing the country. To this end, the Chairperson has congratulated mobile network operator MTN and their partner Lynk Global for successfully conducting Africa’s first satellite-to-phone voice call in the North West.
“These initiatives underscore the importance of fast-tracking South Africa’s satellite programme and that there is no need for overreliance and obsession with a single satellite provider,” said Diko.
She said several other satellite providers have indicated keen interest in entering the South African market and in compliance with our laws. Diko said the Minister is urged to follow the proper channels if amendments to the law are sought, as any attempt to subvert the country’s hard-fought-for and won transformative laws will be resisted.