| August 6 2000
The South African Mail
and Guardian reports that South Africa's Communications Minister Ivy
Matsepe-Casaburri has been dropped from a Cabinet subcommittee appointed
to assess the fallout from the third cellular debacle.
The Communications Ministry Monday August 7 denied the report, saying that
it was "fiction".
At risk is a complicated package of
oil-for-weapons deals whereby South Africa would receive Saudi oil in
payment for South African-manufactured G6 mobile artillery pieces.
The debacle origiates from a protracted licensing procedure that has seen
members of SATRA - the regulatory authority - split over who should
get the new mobile license, allegations of government interference in the
process, court action to halt the naming of the succesful bidder, and
rejection by SATRA of two consultants reports that do not favour the
preferred winner.
SATRA announced in late February that
Saudi-backed Cell C would get the license, but the awarding of the license
has now been halted by court action. The court found prima facie evidence
that government representatives had unduly influenced the process to the
benefit of the Saudi-backed consortium, particulary presidential legal
adviser Mojanku Gumbi, who had been implicated by Satra chair Nape Maepa
in forcing his recusal from the final adjudications for the cellular
licence in February.
The M&G in its report says that a select group of top government
ministers has been assessing the crisis on behalf of the Cabinet without
Matsepe-Casaburri and that the Minister of Finance Trevor Manuel, together
with Minister of Public Enterprises Jeff Radebe and Minister of Trade and
Industry Alec Irwin, have been entrusted with the highly sensitive task
confronting the government after the finalising of the licence was put on
hold in a court interdict last week.
The M&G also says that they want to unravel of business deals between
South Africa and the Saudi backers of the Cell-C, Saudi Oger, who are
closely associated with the Saudi royal family. The government was about
to secure crude oil at more favourable prices than are currently on offer.
In terms of the proposed deal, South Africa would secure a supply of crude
without being at the mercy of the fluctuating fortunes of the rand.
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