COMMUNICATIONS Minister Faith Muthambi believes the Companies Act trumps the law governing the South African Broadcasting Corporation (SABC), allowing her to write a new memorandum of incorporation for the public broadcaster.
According to a copy of the memorandum of incorporation in Business Day’s possession, Ms Muthambi signed it into effect on September 26 last year. She made Hlaudi Motsoeneng’s appointment as chief operating officer permanent in July, two months before the finalisation of the memorandum.
Ms Muthambi told a parliamentary portfolio committee on communications on Tuesday that it was the Companies Act that determined the relationship between government — as the shareholder — and the SABC, and not the Broadcasting Act. "It is the Companies Act that specifically determines the shareholder’s relationship with the board and not the Broadcasting Act," she said in response to Democratic Alliance MP Gavin Davis’ questions.
Committee chairwoman Joyce Moloi-Moropa indicated that she was uncomfortable with Ms Muthambi’s answer. "The Companies Act is a law of general application … I shall have to refer this to the parliamentary legal adviser for their consideration."
Ms Muthambi appeared to agree to this suggestion.
In her presentation to the MPs, Ms Muthambi claimed that the SABC was a state-owned firm and not necessarily an independent public broadcaster as it fell under the Companies Act.
This meant, she said, that she and her predecessor, Dina Pule, were within their rights to alter the memorandum of incorporation of the SABC to allow them to appoint the CE, the chief of operations and financial officers and, when necessary, to suspend them.
Mr Davis said this would take the SABC back to the apartheid-era model. "Now we had a state broadcaster during apartheid. Do we really want to go back to having a state broadcaster which is run by a minister?"
Mr Davis said the SABC was not like Eskom, it is not like Transnet, it is an independent public broadcaster and it is governed by the Broadcasting Act that gives the board the power to control the affairs of the corporation.
"It is the board that gives life to the idea of public broadcasting, not state broadcasting. But what you are doing … (is) trying to turn the SABC from a public broadcaster to a state broadcaster," he said.
Ms Muthambi said the Companies Act now covers the SABC and made it a state-owned company. Mr Davis said this meant that in future Ms Muthambi could impose her preferred candidates, just as she did with Mr Motsoeneng as she had failed to advertise his post or shortlist candidates for it.
Faith Muthambi. Picture: TREVOR SAMSON
COMMUNICATIONS Minister Faith Muthambi believes the Companies Act trumps the law governing the South African Broadcasting Corporation (SABC), allowing her to write a new memorandum of incorporation for the public broadcaster.
According to a copy of the memorandum of incorporation in Business Day’s possession, Ms Muthambi signed it into effect on September 26 last year. She made Hlaudi Motsoeneng’s appointment as chief operating officer permanent in July, two months before the finalisation of the memorandum.
Ms Muthambi told a parliamentary portfolio committee on communications on Tuesday that it was the Companies Act that determined the relationship between government — as the shareholder — and the SABC, and not the Broadcasting Act. "It is the Companies Act that specifically determines the shareholder’s relationship with the board and not the Broadcasting Act," she said in response to Democratic Alliance MP Gavin Davis’ questions.
Committee chairwoman Joyce Moloi-Moropa indicated that she was uncomfortable with Ms Muthambi’s answer. "The Companies Act is a law of general application … I shall have to refer this to the parliamentary legal adviser for their consideration."
Ms Muthambi appeared to agree to this suggestion.
In her presentation to the MPs, Ms Muthambi claimed that the SABC was a state-owned firm and not necessarily an independent public broadcaster as it fell under the Companies Act.
This meant, she said, that she and her predecessor, Dina Pule, were within their rights to alter the memorandum of incorporation of the SABC to allow them to appoint the CE, the chief of operations and financial officers and, when necessary, to suspend them.
Mr Davis said this would take the SABC back to the apartheid-era model. "Now we had a state broadcaster during apartheid. Do we really want to go back to having a state broadcaster which is run by a minister?"
Mr Davis said the SABC was not like Eskom, it is not like Transnet, it is an independent public broadcaster and it is governed by the Broadcasting Act that gives the board the power to control the affairs of the corporation.
"It is the board that gives life to the idea of public broadcasting, not state broadcasting. But what you are doing … (is) trying to turn the SABC from a public broadcaster to a state broadcaster," he said.
Ms Muthambi said the Companies Act now covers the SABC and made it a state-owned company. Mr Davis said this meant that in future Ms Muthambi could impose her preferred candidates, just as she did with Mr Motsoeneng as she had failed to advertise his post or shortlist candidates for it.
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