MPs give Malatsi hard time for attempting to ease transformation requirements for certain companies

CAPE TOWN - Communications and Digital Technologies Minister Solly Malatsi has come under fire in Parliament for attempting to ease transformation requirements for certain companies.

Members of Parliament (MPs) have also accused Malatsi of overstepping his executive powers when he gazetted new regulations that don’t require international companies to give a 30% ownership to a historically disadvantaged South African as required by Broad-Based Black Economic Empowerment (BBBEE) legislation.

But Malatsi defended the move during a portfolio committee meeting in Parliament on Tuesday, saying it also promotes transformation and will benefit the economy and the Information and Communication Technology (ICT) sector.

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Most political parties have rejected the policy move by Minister Malatsi, with some going as far as calling for his resignation.

But Economic Freedom Fighters (EFF) MP Sinawo Thambo accused Malatsi of trying to amend legislation, including BBBEE laws, through the regulations.

"I think that speaks to the overstepping of executive powers has been spoken to in the house. That is my primary legislative concern," said Thambo.

Meanwhile, the African National Congress (ANC)'s Shaik Subrathie questioned whether Malatsi and the Democratic Alliance (DA) are trying to favour Elon Musk’s Starlink with the regulations.

"The party that he represents, which is the DA, have they had any conversations with Elon Musk and Starlink?" Subrathie asked.

But Malatsi assured MPs that the regulations aren’t a special dispensation for Starlink and urged members to allow the process to unfold, including the public consultation process, instead of withdrawing the gazette.