Telkom deal is disaster
A deal in which Telkom will sell a 15 percent stake to the British-owned Vodafone was described as a "disaster" by SA Communist Party general secretary Blade Nzimande on Thursday.
But the head of policy in the presidency, Joel Netshitenze, quickly moved to explain the reasons behind the "divorce" between the two phone operators.
"We are sitting here and observing a disaster," Nzimande told the Black Management Forum’s annual conference in Johannesburg.
"Why do we sell Telkom to Vodafone? Our only real major asset is going to be controlled by the British… this asset, Telkom, we sell it to imperialists."
Nzimande said too many local companies were under foreign control.
"They are no longer South African companies. Just like Telkom shall never be a South African company again for as long as it is in the hands of Vodafone."
He said more state-owned enterprises needed to be created.
"[For instance], Sasol. It’s making obscene profits. That’s why we are saying, let’s nationalise Sasol. We must be able to control somehow our own resources."
But Netshitenze, who was also a speaker at the conference, said Nzimande needed to consider the facts first before making statements about the Telkom deal.
"Telkom is not being sold to Vodafone. In fact, Telkom is unbundling its shares in Vodacom because the fifty – fifty marriage between Telkom and Vodafone was unworkable.
"So they served their divorce papers some time ago," said Netshitenze.
"The reason being, that arrangement constrained Telkom from getting into cellphones, wireless, new generation technology whilst Vodafone and Vodacom are now going into landline.
"That was a marriage which limited Vodafone and Vodacom from expanding into the continent.
"I’m quite convinced that when all the facts are presented to Blade, he will agree that this was a correct decision," added Netshitenze.
Vodacom is 50 percent owned by the UK’s Vodafone and 50 percent by Telkom.
According to a deal agreed upon earlier this month, Telkom will sell a 15 percent stake to Vodafone for R22.5 billion.
The remaining 35 percent will be distributed to Telkom’s shareholders, including the government which enjoys a 39 percent stake in Telkom.
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