ATC140311: Report of the Portfolio Committee on Communications on the follow-up oversight visit to the Eastern Cape from 28 January to 1 February 2013

Communications and Digital Technologies

Report of the Portfolio Committee on Communications on the follow-up oversight visit to the Eastern Cape from 28 January to 1 February 2013

The Portfolio Committee on Communications (the Committee), having undertaken a follow-up oversight visit to Eastern Cape reports as follows:

1. Introduction

During the 2011/12 financial year, the Committee conducted oversight visits to various provinces, amongst others the Eastern Cape. The objective of the oversight visit served as a measurement indicator against the service delivery commitment by the executives. The theme of the oversight was " Touch, Feel and See" how technology contributes to better the lives for all and amongst others the areas of focus were as follows:

(a) The strides made in the progressive realisation of rights as contained in section 16(1) (a) and (b) of the Bill of Rights: (i) Freedom of the media; and (ii) Freedom to receive or impart information or ideas. To this end the Committee visited Media Development and Diversity Agency (MDDA) community media projects, including those community broadcasters supported by Department of Communications (the Department);

(b) Efficiency of the Independent Communications Authority of South Africa (ICASA) in licensing community broadcasting, and monitoring compliance of licensees with license conditions, and other challenges in this sphere of broadcasting;

(c) The role played by Sentech in signal distribution for broadcasting and challenges they are facing in providing services to this Province;

(d) To measure progress made by the South African Broadcasting Corporation (SABC) in rolling out the low-powered transmitters in collaboration with Sentech and ICASA; and

(e) Successes and challenges: (i) experienced by Universal Service and Access Agency of South Africa (USAASA) in deploying telecentres for Information Communication Technology (ICT) services; (ii) experienced by South African Post Office (SAPO) in rolling out postal outlets, addresses and functionality of Public Internet Terminals (PITs); and (iii) rollout of telecommunications and broadcasting infrastructure.

In January 2013, the Committee embarked on the follow-up visit to the Eastern Cape in order to ascertain whether there has been any progress made on the commitments that were made during the 2011/12.

2. Delegation

2.1 Members

The following members formed part of the delegation: Mr Sikhumbuzo Kholwane (ANC Chairperson of the Committee and leader of the delegation); Mr Gregory Schneemann (ANC Committee Whip); Ms Rosalia Morutoa (ANC), Ms Mina Lesoma (ANC) and Mr Aaron Steyn (DA).

2.2 Support Staff

Mr Thembinkosi Ngoma (Committee Secretary)

2.3 Stakeholders accompanying the Committee

The Department, SAPO, SABC, MDDA, USAASA, ICASA, Sentech formed part of the oversight visit delegation.

3. Committee Visits

Day 1 (29 January 2013)

The Committee visited Bay TV Studios, SABC Regional Office in Port Elizabeth, University of Fort Hare (UFH) Community Radio Station, Idekelethu Community Radio Station and Mdantsane FM.

3.1 BayTV Studios

Although this was a follow-up to a previous oversight visit of the Committee, it was agreed to visit BayTV studios for the first time.

Mr Mothi Mfuleni, acting Board Chairperson welcomed the Committee delegation. He informed the Committee that the station was made up of a Board of Directors and Executive Management. The Board of Directors comprises of four subcommittees, namely: community participation; human resources; content development; and independent editorial panel.

Mr Geoff Hopskins, Station Manager played a video to highlight the achievements and programmes of the station. He further presented as follows:

3.1.1 Overview of BayTV

The station was launched in October 2011. The first areas of broadcast that BayTV reached were the Nelson Mandela Bay regions of Uitenhage, Ibhayi townships, Bethelsdorp, Despatch, KwaNobuhle, Motherwell, Jeffery’s Bay and Humansdorp. The station has a viewership of 1, 5 million. It broadcasts in three languages: 60 % in English; 10 % in Afrikaans; and 30 % in IsiXhosa. The station’s content is 60 % talk and 40 % music. BayTV currently employs 48 fulltime interns who earn a stipend, five to 10 volunteer interns in various positions receive training in order to be prepared for the future in the television and film industry.

3.1.2 Content

The station has 90 % local and 10 % international content. The content consists of news, current affairs shows, entertainment and documentaries. It covers local news, sport, youth, children, women’s issues, education, music, local culture and the concerns of the people of Nelson Mandela Bay. The content comes mostly from local producers.

3.1.3 Community Outreach

The station has a variety of community outreach programmes and is used as a platform for local film makers by providing guidelines to assist local producers to write proposals and sell their ideas. It also aims to merge the music and film industries and assist local producers with content development, research and marketing intelligence.

3.1.4 Sustainability and growth

The station started with funding from the Nelson Mandela Bay Municipality but later partnered with Urban Brew through a five year agreement. Urban Brew assisted with content development, people development and sustainability. Furthermore, the relationship with Urban Brew led to the station being included in DSTV channels. Currently, the station does not receive any direct funding from government.

However, the station remains the hub of the local television and film industry, providing a platform for filmmakers and the voice of the Nelson Mandela Bay community.

3.1.5 Challenges

BayTV highlighted the following challenges: (i) lack of funding for technical equipment; (ii) high tariff costs by Sentech; (iii) no direct access to information regarding Digital Terrestrial Television (DTT) migration; and (iv) the station does not receive any form of funding from the MDDA.

3.1.6 Discussion

Members raised the following concerns: (i) whether the station conforms to its licence conditions; (ii) nature of the relationship between Bay-TV and Urban Brew; (iii) long-term sustainability; (iv) nature of relationship between Bay-TV and SABC; and (v) its focus on youth programmes.

BayTV management responded as follows: (i) the licence conditions were being used as a benchmark as none of the management was ever involved in local television; (ii) the split on revenues is 80 % for Bay-TV and 20 % for Urban Brew - Bay-TV receives feeds from Urban Brew which are most viewed in other television stations. However, BayTV was working on a strategy should Urban Brew pull out of the agreement; (iii) no sustainability template had been developed – management was busy grappling with pricing model in terms of pricing in advertising; (iv) BayTV has a good and sound relationship with the SABC and some of Bay-TV Board members are employed at the SABC; (v) By-TV is a community station and not a youth station, however, during campaigns, the influence of youth played a huge role during the recruitment process.

3.1.7 Committee recommendations

The Committee recommended that: (i) MDDA must engage with the station management regarding the issue of funding. Furthermore the Committee informed BayTV that: (ii) Sentech will appear before the Committee regarding tariff reduction which was 35 % for community television and 65 % for commercial and public broadcasters; and (iii) the Department must ensure that it urgently deals with the access to information regarding DTT.

3.2 SABC Regional Office (Port Elizabeth)

Mr Zola Yeye, Provincial General Manager welcomed the Committee and the accompanying delegation. He expressed his gratitude for the follow-up visit.

3.2.1 Progress made regarding issues that were raised in the previous oversight

visit

Mr Yeye informed the Committee that all the concerns that were raised by the staff in the previous oversight visit had been addressed and resolved except for the issue of Mr Vusi Noveve. Mr Noveve was asked to make a submission of his allegations to the Provincial Management. He never made the submission to management instead he sent it to the forwarded it to the Committee and management had no clue how the matter was dealt with.

Since the Committee visit, the SABC had launched three low power transmitters and will launch another three in Rhodes, Steytlerville and Krakeelrivier immediately after the African Cup of Nations.

The issue that was raised by a cameraman regarding his working conditions has been resolved. He has now conducive working conditions.

Management investigated the matter that was raised by Ms Zola Kaso and found that it was unfounded. However, SABC introduced a parity exercise after the Committee’s visit and Ms Kaso benefited from that. There was an exercise in December 2012 called “financial anormalities” and Ms Kaso again benefited from these anormalities. She was further positioned in another area where she only deals with issues of compliance.

The SABC studios were fully resourced with latest equipment and it was the only region that broadcasts on Satellite. Management was in the process of upgrading the few studios that were still operating on analogue, Mhlobo Wenene being one of those studios. Furthermore, the SABC regional management has embarked on the process of upgrading and improving Mthatha studios. Studios will be revamped and digitized. An Outside Broadcast van will be bought to cover the former Transkei area. Upgrading of facilities will also be done at TruFM which will include a music recording studio that will assist communities in recording local talent. However, licence conditions remained a restricting factor for extending footage to surrounding areas.

3.2.2 Committee recommendations

The Committee welcomed the improvements made since its last visit. Some of the issues raised required intervention at policy level and the Committee undertook to deal with the matters when reviewing legislation.

3.3 UFH Community Radio Station

The Committee and the delegation were welcomed by Mrs Vuyelwa Dazana, Station Manager.

Mr Schneemann provided a brief background on the Committee’s previous visit to the station. He explained the reasons for informing the station management late about the Committee visit. He apologised for the disturbance in programming. He read out the challenges and recommendations that were made by the Committee to the station and particularly MDDA in 2011.

3.3.1 Progress made in addressing issues that were raised in the previous oversight visit

The following progress has been made since the Committee’s last visit: (i) coverage has been extended through frequency changes and now reaches Port Elizabeth and Mthatha; (ii) USAASA provided a computer lab; (iii) GCIS places more adverts on the station; (iv) positive working relationship with the community; (v) Amathole District Municipality Councillors were in the process of receiving training on how to speak on radio when invited to programmes.

However, the station had the following challenges: (i) the University can no longer afford to fund the station due budgetary constraints; (ii) the computer lab provided by USAASA had no air-conditioning system; (iii) Sentech high signal distribution tariffs might lead to the station closing down.

3.3.2 Required intervention

Management requested the following intervention from the Committee: (i) additional funding from the MDDA in order to pay presenters’ stipends; (ii) studios need to be upgraded from analogue to digital; (iii) government should refrain from advertising through media brokers; (iv) Department of Public Works (DPW) should make a building available to be occupied by community media.

3.3.3 Responses by State-Owned Entities (SoEs)

The SoEs that were accompanying the Committee responded as follows:

3.3.3.1 Sentech

Sentech was working on a strategy to reduce the community media tariffs. In the meantime, the Department and MDDA should assist the station with the outstanding signal distribution tariffs.

3.3.3.2`USAASA

The air-conditioning system will be delivered and installed by 15 February 2013.

3.3.3.3 MDDA

MDDA will assist the station with its sustainability mechanism as more coverage means more audiences and more audience means more charges on advertisers.

3.3.3.4 The Department

The Department undertook to fully fund the station in terms of payment of signal distribution tariffs.

3.3.3.5 SAPO

SAPO will engage GCIS on the use of community media for their advertising.

3.4 Idikelethu Community Newspapers

The Committee and the accompanying delegation were welcomed by Ms Thembisa Jiba, the Publishing Editor.

3.4.1 Progress made in addressing issues that were raised in the previous oversight visit

Since the Committee visit in 2011, the newspaper had the following achievements: (i) regularly prints 12 page edition; (ii) created projects that create jobs; (iii) conducive office space; (iv) increased readership by a wide margin; (v) circulation increased from 2000 to 5000 copies per month; (vi) able to pay monthly rental on time; (vii) bought more equipment; (viii) provides internship to university students studying towards communications-related degrees; (ix) managed to secure a sponsor with FP & MSeta; (x) managed to secure office space although the building is dilapidated ; (xi) good relations with the local municipality; and (xii) joined an advertising company based in Johannesburg.

3.4.2 Challenges

Apart from the achievements above, the following challenges remain: (i) ever increasing printing prices; (ii) and competing with Daily-Post but Idikelethu is confronting this challenge.

3.4.3 Committee remarks

The Committee welcomed the progress made by Idikelethu Community Newspaper.

3.5 Mdantsane FM

The Committee and the accompanying delegation were welcomed by Mr Xabiso Gqirhana, a Board Member. This was the first visit of the Committee to the station.

3.5.1 Content

The station licence condition allows it to broadcast 60 % in IsiXhosa and 40 % in English. The content is 60 % talk 40 % music. News and information is 50 % local news, 30 % national news and 20 % international news.

3.5.2 Challenges

The station highlighted the following challenges: (i) currently paying R12 000 to Sentech for signal distribution; (ii) could not broadcast after getting the license as there was no accommodation – Mnguni family gave the station a small space to broadcast at their Hotel in Mdantsane; (iii) unable to invest in the community – currently renting all its broadcasting equipment; (iv) receives no funding from MDDA; (v) no assistance from the Department and other stakeholders; (vi) station is not reaching its footprint due problems with the mounting of its antenna; and (vii) no relations with the SABC.

Apart from the above-mentioned challenges, the station still broadcasts 24 hours a day, seven days a week. The station has a good relationship with the Buffalo City Metropolitan Municipality.

3.5.3 Responses by SoEs

The SoEs accompanying the Committee responded as follows:

3.5.3.1 MDDA

R1, 5 million has been approved for Mdantsane FM funding. However, the tax clearance certificate was still outstanding. SABC contributes to the community radio stations through the provisions made in the Electronic Communications Act (ECA).

3.5.3.2 The Department

Mdantsane FM was classified as a category B and is supposed to be getting 70 % subsidy from the Department. The Department will assist the station with capacity building and will pay for the Sentech signal distribution tariffs. The Department requested that it be provided with tangible information so that it can be able to assist the station.

3.5.4 Tour of the station

During the tour of the station, the Committee noted with concern the circumstances under which the stations was broadcasting. The members were not sure whether the station was broadcasting from a toilet or a pantry.

3.5.5 Committee recommendation

The Committee recommended that the Department must provide more information regarding its role at Mdantsane FM.

Day 2 (30 January 2013)

3.6 Vukani Community Radio

Ms Mina Lesoma provided a brief background and recommendations of the Committee’s previous visit to station.

Mr Xolile welcomed the Committee and the accompanying delegation. He reminded the Committee of the dire situation the station was in during its previous visit. Since then, MDDA has worked together with the station to try and resolve all the challenges that were facing the station. MDDA met with all the parties that were not satisfied with the operations at the station.

3.6.1 Progress made in addressing issues that were raised in the previous oversight visit

Since the Committee visited the station in 2011: (i) the station held its Annual General Meeting (AGM) in May 2011 and a new Board of Directors was elected. The Board received an induction, also advertised vacant positions and made the appointments; (ii) it has good relationship with all relevant stakeholders; (iii) the signal was upgraded and coverage extended to other areas; (iv) station programmes focus on local content; (v) listenership grew from 141 000 to 228 000; and (vi) the station receives assistance from GCIS, District and Local Municipalities.

However, the installation of the computer centre was only attended to in November 2012 following Mr Kholwane’s intervention. The service providers are still busy with the installation.

3.6.2 Current challenges

Apart from the above-mentioned achievements, the station presented the following challenges: (i) struggling to get 3G connectivity in the area and that is hampering with opportunities for development; (ii) area not economically reliable for ADSL – Telkom; (iii) unable to reach other communities due to landscape challenges; (iv) Sentech tariff distribution costs too high; (v) no advertising support from the provincial government; (vi) request assistance to create a strategy to formalise community radio stations; and (vii) Independent Electoral Commission does not utilise the station during elections.

3.6.3 Conclusion

The station has seen great improvement since the last visit by the Committee. The station management requested the Committee to continue visiting the station. Furthermore, management thanked Mr Kholwane for the undivided attention he gives to community radio stations.

Ms Nondumiso Mananga, Speaker of the Chris Hani District Municipality and her team of Councillors joined the meeting. She thanked the Committee for showing interest in the community radio station and Cala in general. She wished that other Portfolio Committee’s could learn something from the Portfolio Committee on Communications.

3.6.4 Responses by SoEs

The SoEs that were accompanying the Committee responded as follows:

3.6.4.1 Sentech

Sentech committed to investigate and resolve the issue of the station being unable to reach its footprint.

3.6.4.2 USAASA

USAASA has signed a contract with the service provider requesting higher speed connectivity for the station.

3.6.5 Committee observations and recommendations

The Committee noted with concern that: (i) the last AGM was held in May 2011; and (ii) nothing much happened after the previous visit – things tend to happen when the Committee’s preparing to conduct oversight visits.

Furthermore, the Committee noted: (i) the interest shown in the station by both the District and Local municipalities; (ii) the undertaking by USAASA to finalise the connectivity on or before 28 February 2013.

The Committee recommended that: (i) ICASA Consumer Affairs must visit the area and engage with the Mayor’s office in terms of access to ICT services and provide a full report to the Committee; (ii) the station must amend its constitution, in consultation with MDDA and ICASA in order to have an acceptable period for the Board.

3.7 Cala Post Office

The Committee and the accompanying delegation were welcomed by Ms Noloyiso Xopha, Area Manager and Mr Siphiwo Cetman, Branch Manager.

Ms Morutoa explained that the Committee had visited the Post Office in 2011 and was conducting a follow-up visit in order to determine whether the challenges and Committee recommendations have been adhered to.

3.7.1 Progress made in addressing issues that were raised in the previous oversight visit

The Committee expressed its disappointment that nothing has changed since its last visit. The post office still had one security guard during pension days; the PIT was not working; post office lost pensions to SAASA payments; household payments were done over two days; there was no GCIS stand; the was no business centre; complainants files were lying behind cupboards and not being used; long queues during pension days; people working with Expanded Public Works Programme had to queue for two days before they could be assisted at the post office; computers regularly go down; delays in mail delivery in Cala as opposed to Elliot which gets deliveries on time.

Councillor Phonoshe stated that he received all the services from the post office except that during pension days, there were often long queues which are as a result of staff shortages.

3.7.2 Committee recommendations

The Committee recommended that the acting Chief Executive Officer of GCIS and the Minister should respond about the removal of the GCIS stands in post offices. This was after Ms Xopha had indicated that GCIS stands were moved to the back as per the request of GCIS.

3.8 Meeting with the community of Upper Lufutha in Cala

Mr Lunga Kona, a Senior Manager at the Department of Social Development in Eastern Cape has written to the Committee on a number of occasions requesting intervention in parts of the Eastern Cape that did not have access to television and radio. The Committee undertook to meet with Mr Kona when conducting an oversight visit in the Eastern Cape. The meeting with the community of Upper Lufutha was as a result of Mr Kona’s request. He met with the Committee at Cala Post Office and accompanied it to Upper Lufutha.

The Committee and the accompanying delegation which included the Speaker of Chris Hani District Municipality and her delegation were welcomed by Chief Zanoxolo.

Mr Kholwane explained the purpose of the visit to the Chief and the community and the following issues were brought to the attention of the Committee: (i) there were no roads or bridges that lead to Upper Lufutha; (ii) no television, radio or cellphone network in the area due to topographical challenges; (iii) more communication tools were needed in the area; (iv) MTN erected an antenna, however one needs to climb the mountain in order to receive the signal; (v) no contact with the police and emergency services due to network problems – as a result crime in the area is rife and people die trying to get to hospital; (vi) children in the area have no access to computers and internet – some do not even know how a computer looks like; (vii) there was no post office or satellite post office in the community; (viii) schools in the area do not have computer labs; and (ix) 258 community members work in the Expanded Public Works Programme but have to spend four days queuing at the post office in Cala before they can get their salaries.

3.8.1 Responses by SoEs

The SoEs that were accompanying the Committee responded as follows:

3.8.1.1 SABC

Mr Yeye informed the Committee that Sentech and SABC had conducted an inspection in the area and discovered that there was no signal. Lower and Upper Lufutha were on the list for a low power transmitter and it should be erected before 2014.

3.8.1.2 Sentech

Mr Ndleleni indicated that together with SABC and ICASA, Upper and Lower Lufutha will be prioritised.

3.8.1.3 SAPO

Mr Xiphu undertook to meet with the community leaders to discuss the issue of a satellite post office and post boxes before the end of February 2013.

3.8.1.4 USAASA

Mr Lamani indicated that he will have to check and see if the schools in the area were in the list of schools to be connected. However, he raised a concern that after schools are connected, community members are often denied access to the computer labs.

3.8.1.5 ICASA

ICASA undertook to visit the visit the area to determine if there is signal and will use that information to find a way of closing the gaps with Sentech, SABC and mobile operators. The visit should happen before end of March 2013.

3.8.1.6 The Department

The Department ensured the community that all commitments made during the meeting will be delivered. The Department will write to the Minister informing her of the agreement to assist the community of Upper Lufutha to get universal access.

3.8.1.7 District Municipality

The Speaker informed the Committee that this was not a first visit by government in the area. People come and make promises but no deliverables. She requested that signal and network coverage be prioritised as people in the area were dying as there was no contact between them, the police and emergency services.

3.8.2 Chief Zanoxolo

The Chief hoped that all the promises made will be achieved. He appreciated that Members of Parliament visited Upper Lufutha and held a meeting in his home. He said it was for the first time in 27 years that he hosted Members of Parliament.

3.8.3 Committee observations and recommendations

The Committee noted all the undertakings by the entities and recommended that the Department must provide a detailed report on all the undertakings made by the end of June 2013.

Day 3 (31 January 2013)

3.9 Unitra Community Radio (UCR FM)

The Committee and the accompanying delegation were welcomed by Mr Luvuyo Toni, Station Manager.

Ms Morutoa explained that the Committee had visited the Post Office in 2011 and was conducting a follow-up visit in order to determine whether the challenges and Committee recommendations have been adhered to.

3.9.1 Current State

The brand of the station had been tarnished over the years because of previous mismanagement and internal issues, namely: non-serviced equipment, historical debts and staff dissatisfaction which had resulted in the decrease of listenership, the core function of the station.

The current management has since stabilised the situation by creating strategic plans that focus on developmental programmes and rebranding the station. This has yielded positive response from the business community and the listeners.

The station has all the proper governing structures and has subjected its finances to auditing.

The station has adopted a revival campaign that had the following achievements: (i) successfully created visual spectacle wherever given an opportunity to market the brand; (ii) created a perception that all is well within the brand value chain system; has been able to put a foot forward in aligning itself with credible institutions to create high levels of its brand potential; (iii) created a mobile visibility appeal; and (iv) stretched itself way more to earn the respect of business associations both locally and nationally.

3.9.2 Areas of concern and relations with stakeholders

The station raised the following areas of concern: (i) Media brokers – killing the value of community radio airtime as they book advertising slots with their own rates against the rates that the community radio stations has; media brokers pay after 60 days and this weakens the systems and controls of the station; (ii) SAMRO – tariffs that are applied across the board are not fair to the community radio station; (iii) ICASA – understands that the law requires all licensees to pay 0.2 per cent to the regulator and the station remains committed to comply, however the station requests that ICASA revise this law and give leniency to community radio stations; and (iv) Sentech – the station requests that the Department pay for the community radio stations’ signal distribution tariffs.

3.9.3 Challenges

3.9.3.1 Tax Clearance

UCR FM owed SARS R1 million for vat and tax returns that was not submitted over a period of five years. The historical debt had made the life of the station very difficult as no business wants to trade or associates itself with a non-compliant radio station. UCR FM has engaged SARS at the highest levels locally and provisionally trying to look at possible solutions and arrangements to resolve the matter. In order for MDDA to provide funding to the station, there must be a tax clearance certificate. The Department has committed to assist the station with the debt during the2013/14 financial year.

3.9.3.2 Staff retention

The intention of community radio stations is to develop and groom new talent. However, the commercial and public radio station abuse the community radio stations by poaching its staff and offer better remuneration. The station is unable to retain its staff for long and that impact negatively on the consistency of the station.

3.9.3.3 Government support

The station has not received any form of government support for the past seven years, with the exception of GCIS, OR Tambo District Municipality, Nyandeni Local Municipality and Port St John’s Local Municipality.

3.9.4 Committee observations and recommendations

The Committee noted with concern: (i) the legacy left by previous Board members; and (ii) the former Board Chairperson left with a cellphone and the former station manager left with a brand new Toyota Hilux.

The Committee recommended that the current Board must take action in trying to recover the missing assets and must forward a detailed report on what steps have been taken on the previous Board.

3.10 SABC Mthatha

The Committee and the accompanying delegation were welcomed by Mr Zola Yeye, the Provincial General Manager. During the visit, the Committee was taken for a tour of the building and noted that the equipment was old and that the building was being refurbished.

3.11 Mthatha Post Office

The Committee and the accompanying delegation were welcomed by Mr George Mothema, SAPO Board Chairperson.

Mr Kholwane explained that the Committee had visited the Post Office in 2011 and was conducting a follow-up visit in order to determine whether the challenges and Committee recommendations have been adhered to.

3.11.1 Progress made in addressing issues that were raised during the previous oversight visit

The post office reported the following achievements since the last visit by the Committee: (i) the security of the post office has improved; (ii) tellers handle different transactions – there are queue managers to direct people to the right queue; (iii) a special section for parcels has been introduced; (iv) air-conditioning is working; (v) parcel section had been painted; (vi) customer service area has been enlarged and a wheelchair ramp built; (vii) the post office has a very good relationship with the provincial government; (viii) post office no longer utilises labour brokers, even contracted staff are employed by SAPO; and (ix) a request for renewal of vehicle licences has been submitted to the Department of Transport.

3.11.2 Committee recommendations

The Committee recommended that SAPO should consider assisting government in the delivery of textbooks and that all GCIS stands at post offices should be put in front until there is a letter from acting Chief Executive Officer confirming the removal of GCIS stands.

3.12 Mthatha City Hall

Mr Kona had arranged a meeting between the Committee and people that are affected by slow delivery of ICT services around Mthatha. The low turnout by community members was due to an urgent council meeting that was held at the venue where the Committee was supposed to meet with the community. .

Mr Victor Letuka from Matatiele raised the following concerns: (i) no television signal in the Tseda area of Matatiele; and (ii) people must climb up the mountain in order to access to a cellphone signal..

Mr Thobela Madubela of Southern Tsomo raised the following concerns: (i) only people with satellite receivers have access to television signal; (ii) no access to water, electricity and sanitation in the area; (iii) people with televisions cannot use them but are expected to pay television licences; and (iv) no Internet connection at schools although learners write similar examinations with those that have Internet connectivity.

Mr Khuthele Jonas of Ngqamakhwe raised the following concerns: (i) only areas close to the N2 receive a television broadcast signal; (ii) in Khwezi Location in Mthatha, only one SABC channel is clear and people rely on DSTV more than SABC; and (iii) no cellphone network signal during the festive season.

Mr Gaxeni Fudumele of Ngqeleni raised the following concerns: (i) no television and radio signal; (ii) no cellphone network signal; (iii) retired people who had access to television whilst working in the big cities were still expected to pay television license even though they no longer had access to television broadcast signal.

3.12.1 Responses by SoEs

The SoEs that were accompanying the Committee responded as follows:

3.12.1.1 SABC

Mr Yeye explained that all the areas mentioned above have been identified on the feasibility study that was conducted by the SABC. He said it does not work paying a television licence if people do not have access to television.

3.12.1.2 Sentech

Mr Ndleleni reported that all the areas mentioned above have sites but are unable to receive signals due to the landscape. Sentech was still waiting for the Department of Environmental Affairs to approve a site in Ngqamakhe. Matatiele will have to wait for the launch of digital migration as there are many people involved in the application process for a site. Sentech will scan and check the signal in Mthatha.

3.12.1.3 ICASA

Mr Mark Ramsay committed to take measurements in all areas in order to determine what services are available and in what locations.

3.12.1.4 The Department

The Department noted all the commitments made by the entities and will make the necessary follow-ups.

3.12.1.5 USAASA

USAASA committed to take details of all schools without connectivity and see where it can assist. However, it will depend whether the area has electricity before USAASA can install. A number of schools have already been connected in Mthatha.

3.12.2 Committee observations and recommendations

The Committee noted the undertaking made by the Department regarding follow-ups on the commitments made by the entities. The Committee recommended that the Department must conduct its oversight function over the entities. The Committee was aware of the situation in Matatiele.

3.13 Khanya Community Radio

Mr Kholwane explained the purpose of the visit and due to time constraints; he requested that the presenter focus on the station’s challenges. Mr Mzimasi Zinto, Board Chairperson welcomed the Committee and the accompanying delegation.

3.13.1 Challenges

The station raised the following challenges:

(i) Human resources – Department never assisted in staff training; station cannot retain staff due to lack of financial resources; and station does not have a tax clearance certificate.

(ii) Equipment – outdated and old equipment; lack of financial resources to purchase new equipment; and only one studio is functional.

(iii) Signal distribution – business does not advertise on the station as it does not reach all its footprint coverage; and lack of resources to upgrade the signal.

(iv) Sustainability – local businesses do not advertise on the station; it does not generate any revenue from the community due to high poverty levels and high unemployment rate.

3.13.2 Responses by SoEs

(i) Sentech – will meet with the station management to discuss its signal problems.

(ii) MDDA – to meet with the station management to discuss funding and tax clearance certificate matters.

(iii) SABC – will assist in terms of staff training.

3.13.3 Committee observations and recommendations

The Committee recommended that the Department must provide a full report on the state of affairs regarding coverage for community radio stations. The report must contain a strategy on how to monitor coverage for community radio stations.

Day 4 (1 February 2013)

3.14 Sentech TCC (East London)

The Committee and the accompanying delegation were welcomed by Mr Skosana, Operations Manager.

Mr Skosana presented a signal coverage map of the region. More than 60 % DTT coverage has been completed in the province and by the end of the financial year, Sentech would have covered 80 per cent of the province.

3.14.1 CSI Concept

As part of its CSI responsibilities; Sentech presented as follows: (i) an I-lap programme will connect fourteen (14) schools per year in the province; (ii) two (2) schools have already been connected in Mqhekezweni and Mbenyane respectively; (iii) there was a plan to connect another school in Amathole Region before the end of 2013; (iv) Fourteen (14) computers were connected at Mbenyane.

3.14.2 Challenges

Mr Skosana highlighted the following challenges: (i) bad roads that make it impossible to reach sites; (ii) technicians have to sleep on sites; (iii) problem with staff retention; and (iv) old technicians will be retiring and there was no succession plan.

3.15 Eastern Cape Development Corporation (ECDC)

The Committee and the accompanying delegation were welcomed by Ms Noxolo Mtana, the sector specialist. Mr Kholwane explained that the Committee’s visit is a response to Ms Noxolo Mtana’s request she made during the MDDA Board interviews.

3.15.1 Overview of ECDC

ECDC is a dynamic economic development agency based in Eastern Cape. It works with provincial and national ministries, municipalities, chambers, private business, communities and other development agencies to implement the economic development policies of the Eastern Cape provincial government. ECDC reports to an independent Board of Directors representing all stakeholders in the Eastern Cape. The directors are appointed by the Department of Economic Affairs, Environment and Tourism. It was formed in 1996 by an Act of the Eastern Cape Legislature to plan, finance, co-ordinate, market, promote and implement the development of the Eastern Cape Province and its entire people in the fields of industry, commerce, agriculture, transport and finance. ECDC is wholly-owned by the Eastern Cape government.

ECDC aims to: (i) attract new investors and position the Eastern Cape as the investment destination of choice; (ii) stimulate exports; (iii) facilitate economic development; (iv) derive value from its assets, including a large property portfolio; (v) build existing businesses; and (vi) facilitate start-up businesses.

3.15.2 Interventions

The ECDC profiled three interventions in its pipeline, which were facing a number of ICT policy, legislative and regulatory inhibitors, those being: (i) Upskilling of 20 ICT graduates from local Further Education and Training (FET) colleges; (ii) funding model & moratorium on the licensing of the Eastern Cape Community TV station; and (iii) local content generation.

Local ICT SMMEs were accorded an opportunity to share their views on ICT policies, laws and regulations that are hindering their ease of doing business. Amongst the issues raised were the following: (i) Mr Jabu Mangena of Khula Technologies who graduated from the ECDC funded ICT Incubation Programme pleaded for more visible ICT Policy leadership from the Department in order to facilitate meaningful business relations between local players and their regional and international business counterparts; (ii) Mr Mark Gray of Easttel, a division of Amatole Telecommunication Services decried the unintended consequences of the Policy, Legislative and Regulatory Framework that gave birth to licensing of Under-Serviced Area Licensees (USAL).

3.15.3 Committee recommendations

The Committee recommended that the Department must secure a date for a follow up visit to the Eastern Cape by all entities accountable to it and assist the ECDC in resolving its ICT-related challenges. The Department must provide the Committee with a detailed report of the follow-up visit.

Report to be considered.

Documents

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