ICASA changes its mind, again
Plans to hold an inquiry into whether Telkom should have been allowed to shed its stake in Vodacom have been scrapped by the regulatory authority – a week after it became patently obvious that the deal could not be reversed.
Telkom had already sold 15% of Vodacom for R20.95bn as a precursor to listing another 35% on the JSE when the Independent Communications Authority of SA (Icasa) tried to halt the process last week.
Icasa’s intention was to call for public comment on the deal, chiefly under pressure from the Congress of South African Trade Unions, which was determined to scupper it.
It is still unclear who put political pressure on Cosatu to oppose the deal, but their efforts finally became futile when Icasa staged a second U-turn.
Its first U-turn was to declare that Telkom’s disinvestment and the sale of Vodacom shares to Vodafone did require approval.
That reversed its previous stance that it had no jurisdiction over the matter.
Last Friday it made a new U-turn by declaring that it “will not continue with the public hearings as envisaged”.
The issue climaxed in the high court last Sunday when Cosatu and Icasa sought an interdict so the deal could be re-scrutinised. Judge John Murphy threw them out, and Vodacom listed triumphantly on Monday morning.
Cosatu still wants a legal review to assess whether the deal needed Icasa’s approval.
On Monday Murphy will issue written reasons for letting the multibillion-rand deal proceed.
ICASA on Vodacom deal – give your views
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