Malatsi to meet MPs over decision to ease BBBEE requirements for companies

CAPE TOWN - Communications Minister Solly Malatsi will face members of Parliament (MPs) on Tuesday to explain his decision to ease Broad-Based Black Economic Empowerment (BBBEE) requirements for companies, including Elon Musk's Starlink.
Members of the committee are expected to quiz Malatsi on his decision which has come under criticism from portfolio committee chairperson, Khusela Diko, and parties like the MK Party, which have threatened court action.
Malatsi gazette the regulation on Friday, which allows his department and its entities to consider other factors like costs, ahead of other requirements.
The regulation published on Friday by Minister Malatsi has been dubbed the 'Starlink gazette' because it will allow companies like Musk's satellite internet provider to operate without meeting certain transformation requirements.
Starlink is currently unable to launch in the country because it doesn't have a local entity that is 30% black owned as required by law.
Communications committee chairperson, Khusela Diko, said the regulations appear to be 'in contravention of the Electronic Communications Act and in favour of low earth orbit satellite provider SpaceX' and wants an explanation from Malatsi.
Non-profit organisation, public interest SA, has also entered the debate and has written to Diko to express 'deep concern' over what it describes as 'procedurally flawed and legally questionable actions by Malatsi'.
But Malatsi has defended the move, saying the directive seeks to provide the much-needed policy certainty to attract investment into the information and communication technologies (ICT) sector.

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