State demands slice of Seacom pie

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http://www.busrep.co.za/index.php?fSectionId=&fArticleId=3996768

Johannesburg - The department of communications is demanding that the international owners of Seacom, the $500 million (R3.6 billion) undersea fibreoptic cable project intended to link South Africa with Europe and Asia, sell equity to local companies before it can operate locally.

 

[DavidP]

This is just stupid! They demanding prices come down their new golden boy Neotel organises to drop price by 80% but they not allowed?

 

[morkhans]

Does the government have to have a finger in every single pie so they can make sure everyone bakes the same red tape encrusted dish?

 

[Pilgrim]

"Local companies should economically benefit [from] international traffic as well," she said. "Otherwise [the current structure] seems like we are renting space."

These people are the biggest reason South Africa is a pile of sh|t. An international company comes along and wants to offer us a service and now they have to give up their equity to some random idiots from SA?

If I was Seacom I would give SA the finger and land in every African country except SA.

Getting back to the quote. Dear Lyndall Shope-Mafole. Do you not think that local companies will benefit from low telecom costs?

And do you not think that if local companies want to get a piece if the international pie they should go bake their own fuking pie?

Do you really think that SA can continue to force themselves on international companies?

Why don't you go tell BMW, Audi, Toyota, etc. that they cannot sell their cars in SA unless they sell (of give) part of their factories to SA?

Oh right. Then nobody would sell cars in SA any more and we all would be fuked...

Why do the same with teleco then?

 

[ShaunSA]

She said the government had met with Seacom and Neotel representatives, who had "indicated that they will work with us".

Problem solved. Seacom and Neo will give Ms Molefe her piece of the pie. It would be really interesting to know what companies she has shares in.

 

[Sneeky]

"Local companies should economically benefit [from] international traffic as well," she said. "Otherwise [the current structure] seems like we are renting space."
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Shope-Mafole said companies that wished to participate in the cable networks projects should hold a network service licence and have black equity shareholding, as required by the information and communications technology charter.

The deal is exclusive to Netoel right, but who else fits this profile as presented by the tsunami expert.
I wonder what piece of the pie TELKOM will acquire in a round about way.

edit: if they dont already have a share, SEACOM seem cagey with info of their partners.

 

[Tns]

well someone has to fund the gravy train.....

 

[ToxicBunny]

This is pathetic.

If madam shope-mafole has any commercial interest in this she needs to burn in a pit of fire for 100 years.... *mutter*

 

[Wyzak]

Yep, and so our worst fears have come true. It was only a matter of time before government would intervene and screw this up.

 

[The_Unbeliever]

Wanted to unload a heap of vitriol right now... but will be keeping my mouth shut as I don't want to see the inside of a court of law...

 

[Iwojima]

Not a suprise really...after all it is the African way.

"If you want to bring oxen through my land I'll be needing a few from your herd in repayment...but don't tell anybody I'm charging"

 

[kifoth]

Shope-Mafole said the government was not interested in Seacom's partnership with Neotel because "they couldn't have done it any other way … but part of the requirements for it to land in South Africa will be local participation at an international level".

So what about all the other companies doing business in SA? Does Microsoft now have to be 51% South African owned before it can sell Windows here? What about the oil companies?

They're making stuff up as they go along to protect their own interests. This is how Zimbabwe got started.

 

[Kasyx]

Does the government have to have a finger in every single pie so they can make sure everyone bakes the same red tape encrusted dish?

That belongs on the front page of every newspaper in SA.

Awesome quote.

 

[lenosb]

Interesting how there are never any meaningful demands made of Telscum by Ms Tsunami........

 

[MFour]

Ah so agreement has been reached on the kickback package...

 

[Vrotappel]

This is the only way to do business in Africa. You must line the right pockets.

 

[biltonguy]

I try to be optimistic about SA, but they make it so hard!

 

[XCentricdave]

I try to be optimistic about SA, but they make it so hard!

Quite.

Far too much concentrating on dividing up profits, ownership shares and board positions; absolutely no focus on doing anything which will benefit the country, local businesses or people.

Very frustrating.

 

[Tns]

This is the only way to do business in Africa. You must line the right pockets.

Yeah money does talk it seems

 

[semiautomatix]

Sod! Clearly her little mind is incapable of seeing a bigger picture... The benefit to millions of South African businesses (and in turn, consumers, etc, etc) instead of one big equity partner would seem to be the biggest selling point. But no, the politicians need to eat. I would need a series of expletives to convey what I feel right now