Issued by: GCIS
PIECE-MEAL, PREMATURE, INTERRUPTION OF AWARDING OF THIRD CELLULAR LICENCE CAUSING IRREPARABLE DAMAGE - MATSEPE-CASABURRI
12 July 2000
Pretoria - The Pretoria High Court will on Friday hear legal argument from Communications Minister Dr Ivy Matsepe-Casaburri on why the interdict by Netxtcomm in preventing her from awarding the third cellular licence is piece-meal, premature and damaging to the economy.
In an affidavit to be tabled before the Pretoria High Court, Dr Matsepe-Casaburri argues that by seeking an interdict, Nectcomm has perceived that she will simply act upon the final recommendation by the South African Telecommunications Regulatory Authority (Satra) when she was applying her mind over several options open to her.
"The proper procedural course for the applicant (Nextcomm) would be t!o seek appropriate relief in due course once I have made a determination," argues the Minister.
Dr Matsepe-Casaburri has described the court challenge as an attempt by Nextcomm to "use this civil process to fetter my discretion as the responsible Minister for the determining and awarding the third cellular licence".
The Minister: "It is both presumptuous and speculative for the applicant to seek an interdict preventing me after the lapsing of the full five day period from acting on the final recommendation of the second respondent (Satra). There is no factual basis for the applicant to presume and speculate that I will act on the final recommendation of the second respondent.
"I contend that I am enjoined by the Constitution and Telecommunications Act to exercise my executive and statutory powers in determining and awarding the third cellular licence upon a careful consideration. The determining and awarding of the third cellular licence is a matter of serious economic consideration for the South African Government. I am required to bring an independent mind in determining and awarding the third cellular licence."
The Minister has emphasised that "any unnecessary delay in the awarding of the third cellular licence carries with it the risk of great and substantial loss to the fourth (Cell C), fifth (Africaspeaks Communications), sixth (Five Mobile Networks), seventh (Kelgela Investments) and eighth (Telenor/Telia Consortium) respondents as well as the Government."
She said it was "important that the determination and awarding of the third cellular licence is made and that finality be reached in the interests of all parties" as this would enable any party -should such party so wish - "to challenge the determination."
The Minister said the unnecessary delays in concluding the awarding of the third cellular licence adversely affected the country as a preferred investment destination.
Dr Matsepe-Casaburri: "The capacity for the creation of employment is substantially reduced. The income generated from the proceeds helps in the reduction of normal debt. Delay in awarding of the third cellular licence compromises this particular objective in the public interest.
"Therefore, I submit that any piece-meal, premature and interim determination and the interruption of the determination process of awarding the third cellular licence will cause substantial and irreparable damage to all the parties concerned as well as the Government.
"It is not in public and national interest to delay the determination process any longer. In the circumstances the balance of convenience does not favour the applicant for the interim relief sought in these present proceedings."
ISSUED: BRIAN SOKUTU
MINISTRY SPOKESPERSON
CELL: 083-327-3229