Vodacom, ICASA and Cosatu on war path

ADSL South Africa (Broadband South Africa), 17 May 2009

Vodacom, ICASA (The Independent Communications Authority of South Africa) and Cosatu (Congress of South African Trade Unions) are about to ‘lock horns’ in a struggle that has already seen the Rand drops 3% against the dollar on Friday.

Telkom’s sale of 15% of its stake in Vodacom to Vodafone under threat…

Center to the struggle is ICASA’s decision to make a u-turn and stop Telkom’s sale of 15% of its holding in Vodacom to Vodafone in the UK. This of course threatens among other things; also Vodacom’s planned listing on the JSE (Johannesburg Stock Exchange).

Vodacom’s listing under threat…

Vodacom’s planned listing on the JSE on Monday is under threat considering the urgent court application ICASA and Cosatu have brought on Friday in a bid to stop Vodacom’s listing.

It’s as clear as day light that ICASA lacks the leadership to make it the independent organisation its suppose to be and has set us on the road to destruction. In fact, all the signs are there that ICASA has given in to political pressure from the Zuma-led administration and can now rightly be referred to as The Dependent Communications Authority of South Africa (DCASA). Cosatu is not far behind and reeks of communism in the disguise of job protection. We are definitely in for a rough ride if ICASA and Cosatu’s shenanigans lead to a situation where investors, especially foreign investors, decide that the risks outstrip the returns of investing in South Africa.

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