Malatsi details persistent headaches at portfolio depts

Minister Solly Malatsi has highlighted the ongoing challenges in the governance of entities within the Department of Communications and Digital Technologies (DCDT) portfolio. The portfolio consists of 11 state-owned enterprises, including Broadband Infraco, Film and Publications Board, Independent Communications Authority of SA, NEMISA, Postbank, SABC, SA Post Office, Sentech, SITA, Universal Service and Access Agency of SA, and .ZA Domain Name Authority.

During an interview with ITWeb, Malatsi discussed various issues and shared updates on these entities.

Malatsi acknowledged that the state-owned enterprises in the portfolio face numerous challenges, ranging from leadership instability and governance issues to liquidity risks. He stressed the need to explore better ways to secure their sustainability, emphasizing that the state no longer has the means or capacity to support unsustainable entities. The minister also noted that leadership within these entities had not invested sufficiently in maximizing their commercial sustainability, leaving them reliant on state funding.

Despite these challenges, Malatsi reported progress in filling key executive roles and ensuring stability at the board management level. He pointed out that, with the exception of the Film and Publications Board, all boards now have full membership. Malatsi also addressed the government IT procurement arm, SITA, which he considers one of the "bugbears" due to its capacity to meet government's ICT needs.

He expressed confidence in the newly appointed managing director and board, and encouraged them to give their best in steering the institution forward. Malatsi noted that several related discussions, which had been ongoing prior to his appointment, are now being addressed expeditiously, including examining SITA's business model.

The minister highlighted that the portfolio is starting to develop clearer policy direction on several matters, particularly in promoting a pro-competition sector and creating a more stable and predictable policy environment. This environment is crucial for attracting much-needed investments. In the case of the SABC, its financial struggles to fund public broadcasting have been a long-standing issue, with a net loss of R253 million in the 2024/25 financial year, up by 28% compared to the previous year.

The SABC recently appointed BMIT Knowledge Group to research and develop a funding model to ensure the public broadcaster's long-term financial stability. Malatsi confirmed that this funding model work has been finalized and is currently being reviewed by the National Treasury for potential implementation.