Democratic Alliance Telecommunications and Postal Services Shadow Deputy Minister Cameron Mackenzie on Wednesday questioned how State-owned Broadband Infraco would be funded in future.
This followed the revelation by Infraco CEO Phuleng Kwele and chairperson Mandla Ngcobo during a presentation to the Portfolio Committee on Tuesday that the entity only had enough funding to trade until August.
By September, the company would not have funds to continue operating, the duo said, outlining the entity’s business plan for the 2015/16 financial year.
Mackenzie stated that there was no line item for any funds allocated to Infraco by the Department of Telecommunications and Postal Services.
“It is imperative that the entity has clarity on its funding in order to protect its assets, provide assurance to its customers and secure its place as a pivotal player in the roll-out of broadband connectivity nationwide,” he said, calling on Telecommunications and Postal Services Minister Siyabonga Cwele to provide clarity on the future of Infraco to Parliament.
Infraco, which boasted R2-billion in assets and a 17 000 km national fibre-optic network, was a critical component of South Africa’s broadband plan, SA Connect.
“Broadband Infraco should not be left to wither and die because of continued Cabinet dithering on its future. [Government] must immediately offer it for sale to the private sector so it can continue operations,” he added.