Staff Reporter

The Economic Freedom Fighters (EFF) has launched a fierce attack on the Minister of Communications and Digital Technologies, Solly Malatsi, accusing him of using a Ministerial Policy Directive to illegally bypass South Africa’s Black Economic Empowerment (BEE) laws for the benefit of foreign satellite network operators, most notably SpaceX’s Starlink.

The party’s condemnation follows the publication of a directive that, according to the EFF, is designed to allow companies like Starlink to circumvent the mandatory 30% local ownership requirement for telecommunications licenses.

This requirement is enshrined in the Electronic Communications Act and the ICT Sector Code, and is intended to promote economic transformation and protect the local industry.

In a statement, the EFF claimed that the policy directive would allow foreign operators to substitute the local ownership requirement with equity equivalent alternatives, such as infrastructure donations.

“The Red Berets have accused Malatsi of overstepping his authority by using a policy directive to sidestep Parliament’s law-making powers,” the party stated.

The EFF argues that this move essentially amounts to a de facto amendment of the law, which is the sole prerogative of Parliament, and that the proposed alternatives are less transformative substitutes that do not genuinely address Black ownership.

The party further claims that the directive undermines the institutional autonomy of the Independent Communications Authority of South Africa (ICASA), the sector regulator.

The EFF asserts that ICASA has previously raised concerns about the legality of the Minister’s instructions, and that Malatsi is attempting to coerce the regulator into accepting a legally questionable interpretation of the empowerment requirements.

The Minister, a member of the Democratic Alliance (DA), has previously argued that the policy aims to correct regulatory inconsistencies, attract foreign investment, and expand high-speed internet access to underserved communities, aligning ICASA’s rules with the broader B-BBEE Act.