Huge financial loss… 

The irony of the situation is now that Sentech is expecting to make a loss to the tune of R214m for the 2009/2010 financial year; the government is ready to step in. Needless to say, it is now going to cost taxpayers millions more in additional funding, much more than Sentech originally needed to stay afloat.

Get private investors onboard or allow Sentech to collapse… 

If it’s not already too late, private investors should be allowed to provide funding to Sentech this time around.   

If government still prefers to play hard ball with private investors, then Sentech should rather be allowed to collapse than costing the South African taxpayer another cent. This is recommended, especially given the fact that even a fully funded Sentech has a very slim chance of surviving for long in a telecoms market characterized by intense competition. 

Given the above, without going into much of the details here, it will be interesting to see the rescue plan Nyanda and his team is going to place on the table.  

ADSL South Africa (Broadband South Africa) is of the opinion that any plan to rescue Sentech is going to cost the Average Joes in South Africa millions of rand. Maybe it’s best to allow Sentech to collapse this time around.