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.<\/p>\n
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. <\/p>\n
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.<\/p>\n
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.<\/p>\n
Its first U-turn was to declare that Telkom’s disinvestment and the sale of Vodacom shares to Vodafone did require approval.<\/p>\n
That reversed its previous stance that it had no jurisdiction over the matter.<\/p>\n
Last Friday it made a new U-turn by declaring that it “will not continue with the public hearings as envisaged”.<\/p>\n
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.<\/p>\n
Cosatu still wants a legal review to assess whether the deal needed Icasa’s approval.<\/p>\n
On Monday Murphy will issue written reasons for letting the multibillion-rand deal proceed.<\/p>\n