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.<\/p>\n
But the head of policy in the presidency, Joel Netshitenze, quickly moved to explain the reasons behind the "divorce" between the two phone operators.<\/p>\n
"We are sitting here and observing a disaster," Nzimande told the Black Management Forum’s annual conference in Johannesburg.<\/p>\n
"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."<\/p>\n
Nzimande said too many local companies were under foreign control.<\/p>\n
"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."<\/p>\n
He said more state-owned enterprises needed to be created.<\/p>\n
"[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."<\/p>\n
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.<\/p>\n
"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.<\/p>\n
"So they served their divorce papers some time ago," said Netshitenze.<\/p>\n
"The reason being, that arrangement constrained Telkom from getting into cellphones, wireless, new generation technology whilst Vodafone and Vodacom are now going into landline.<\/p>\n
"That was a marriage which limited Vodafone and Vodacom from expanding into the continent.<\/p>\n
"I’m quite convinced that when all the facts are presented to Blade, he will agree that this was a correct decision," added Netshitenze.<\/p>\n
Vodacom is 50 percent owned by the UK’s Vodafone and 50 percent by Telkom.<\/p>\n
According to a deal agreed upon earlier this month, Telkom will sell a 15 percent stake to Vodafone for R22.5 billion.<\/p>\n
The remaining 35 percent will be distributed to Telkom’s shareholders, including the government which enjoys a 39 percent stake in Telkom.<\/p>\n