Starlink and parliament’s theatre of the absurd

The parliamentary portfolio committee on communications on Tuesday staged a fractious, grandstanding, pontificating meeting after summoning – sorry, asking – communications minister Solly Malatsi to address them. The topic: his decision to ask Icasa to consider providing Starlink – sorry, any satellite internet provider – with the option of an equity equivalent rather than having to make a 30% BEE equity grant. 

The committee members generally bristled at the thought that South Africa’s precious sovereignty and its BEE policy were being challenged after last week’s meeting in the Oval Office, which was attended by Elon Musk, the owner of said satellite internet provider Starlink. 

Malatsi, a member of the DA, had to put up with being personally maligned, castigated and criticised by EFF and MK members for his duplicity, which is not hypocritical at all, and which he accepted in amazingly good grace. 

Less explicable was the position of the ANC members who outright rejected Malatsi’s sensible suggestions that the public should be given an opportunity to comment on the issue, even as his proposal was being endorsed at that very moment (in general terms) in a different forum by President Cyril Ramaphosa. DA committee member Tsholofelo Bodlani suggested the ANC members should update their phones. 

Malatsi was at pains to point out that all he had done is gazette a very short, three page “proposed policy direction”, inviting public comment on the notion that the regulator, the Independent Communications Authority of South Africa (Icasa), should propose ways to harmonise BEE legislation with the Electronic Communications Act and the information and communications technology (ICT) sector code. Doing so would effectively allow Starlink to operate in South Africa through equity equivalents currently applicable to a host of other technology companies, given Musk’s objection to handing over 30% of his equity to black investors on the basis that the stipulation is “racist”.

The point of the exercise, Malatsi underlined several (hundred) times, was to gauge public reaction, after which a decision would be made, perhaps six months from now. The process of discussing the Starlink issue had long preceded the Oval Office meeting, he said. Icasa could come to any recommendation it wanted to, he said. It was just a coincidence that the proposed policy change followed the Oval Office meeting, he said.

Committee members were quick to point out that this was seemingly disingenuous. “This is about Starlink,” more than one member said, pointing repeatedly to the presence of the ubiquitous billionaire at the Oval Office hoedown. 

Malatsi was not in attendance at the Oval Office meeting, but behind all the grandstanding lies an unspoken question; one which was actually asked by a different attendee at that Oval Office meeting: Cosatu national spokesperson Zanele Sabela. She said prior to the trip to the US: “There are things we can start to talk about … so that we can get this monkey off our back in terms of the fires that Elon has been stoking.”

‘Not being bullied’

The response of the committee members to this implicit question, “do we want that monkey off our backs”, became very apparent at the portfolio committee meeting: absolutely not. Generally speaking, the meeting was more or less in favour of the monkey continuing to be on the back, which, for people party to the tricky process of  “re-engaging” with the US, could constitute something of a headache.

What were their arguments?  

The three biggest issues were the notions of regulation parity; South Africa’s sovereignty in insisting on transformation; and national security, given Musk’s association with the administration of US President Donald Trump. All tricky issues, in fact.

On regulatory parity, committee chair Khusela Sangoni Diko made the point: “We have heard from the industry, and I’m sure they will comment, but they have said they want regulatory parity … we demanded of them universal service obligations, spectrum conditions … they’re governed by the Electronic Communications Act. 

“Now you remove the 30%. Have you thought about the implication of that?” she asked, suggesting these firms might decide to divest or reduce their BEE holdings.

On sovereignty and BEE, ANC member Oscar Mathafa pointed out that Icasa’s own ICT sector report for 2025 called for a deeper transformation, particularly in ownership and management of the ICT sector. “W e request all parties and members of society who are interested in this matter to reject this particular policy directive. It goes against the values of what this government seeks to achieve. And I and the party that I sit in, I don’t think we will support it.” 

And on the national security issues, EFF member Sixolise Gcilishe  said: “So now we have a bunch of bullies bullying you and you are bending backwards. I’m wondering if maybe it doesn’t bother you that you’re making us look weak, when racists are throwing toys, and they are hating on black people in our country, and you’re giving them what they want.”

Clearly, she said these are people who hate the laws of this country.

In response, Malatsi said there was a lot of “audience exhibition” taking place at the meeting. “It seems to say that you’ve got a minister who belongs to the DA, who somehow has a conspiracy to make special dispensation for any interested businesses to operate in in our country,” said Malatsi.

“Nothing could be further from the truth. Am I being bullied? No, I’m not being bullied. I don’t take kindly to bullies and I would not allow myself to be bullied.”

He denied BEE rules were being sidestepped, saying the existing legislation already makes provision for equity equivalence or pursuing 30% equity ownership. “That choice lies upon whoever wants to enter the market. It is a choice that is embedded in the legislation. Furthermore it was enacted by the ANC, “so we are not trying to act outside the prescripts of what the law of empowerment says”.

He didn’t mention the monkey on the back.  

_{Top image: Solly Malatsi (Gallo Images/Frennie Shivambu) / Currency.}