Malatsi opens nominations for Sentech board
The department is seeking qualified individuals with expertise in fields such as electrical engineering, broadcasting, finance, and ICT, to join Sentech's board.
Candidates must demonstrate integrity, ethical leadership, and a deep understanding of public sector governance. This call for nominations follows the growing concern around Sentech's financial stability and the need for effective oversight.
The board nominations come at a critical time as communications minister Solly Malatsi is preparing to appoint an independent mediator to resolve the long-standing tariff dispute between Sentech and the SABC.
The debt, which stood at approximately R1bn by the end of March 2024, relates to signal distribution fees that the SABC owes to Sentech for terrestrial broadcasting.
Monopoly pricing
The SABC has accused Sentech of "monopoly pricing" for carrying its terrestrial signals, but a two-year investigation by the Competition Commission found no evidence of unfair pricing.
Despite this, there are concerns about the disparity in signal distribution fees between competitive markets, such as satellite, and the terrestrial market where Sentech holds a monopoly.
Sentech's reliance on the SABC for nearly half of its revenue complicates the financial dynamics between the two state-owned entities.
The broadcaster is struggling to make monthly payments of around R55m and is at risk of losing access to its signal distribution network, which would leave millions of viewers across South Africa without access to content.
The department's presentation to Parliament noted the urgent need to appoint a mediator, with negotiations at a stalemate.
Strategic leadership
Appointing new non-executive directors to Sentech's board is seen as a necessary step towards improving corporate governance, especially since this dispute could affect the GNU’s universal service objectives.
The selected individuals will be tasked with overseeing Sentech's strategic direction and ensuring the company’s financial sustainability while fulfilling its mandate of providing universal access to broadcasting services.
Applications for the board positions close on 20 September 2024.
The nominees must possess a minimum of five years of board experience and eight years in a senior management role.
Preference will be given to candidates who enhance the board’s diversity in terms of skills, gender, youth, and disability representation.
