Asha Speckman
THE National African Federated Chamber of Commerce (Nafcoc), which had bought a 20 percent equity stake in mobile television provider Mobile TV, would be more than a passive investor and would not have a “free ride”, Mothobi Mutloatse, the chairman of the Mobile TV Consortium, said yesterday.
Both parties declined to comment on the value of the transaction, which was announced yesterday. Questions hang over how Nafcoc will pay for its purchase.
The black business body, whose ties with Nafcoc Investment Holding Company, or Nafhold, were severed two years ago after the parent body allegedly misappropriated funds, has not clarified how it will fund this investment.
Lawrence Mavundla, described as the chairman of the newly created investment arm of Nafcoc, said the organisation was capable of funding the project and had access to state funding institutions such as the National Empowerment Fund and the Industrial Development Corporation.
“How can an organisation with a R1.5 billion investment in casinos be broke? We do have the balance sheet. It is easy for people to just write what they like,” he said in response to a question on the group’s financial viability.
Nafcoc belongs to the Black Business Council, of which billionaire Patrice Motsepe is a member. Mavundla said: “Patrice is of course a corporate member but he’s not linked to our assets.”
Mutloatse said Nafcoc would pay cash. He said as an investor Nafcoc would also contribute towards distribution of the mobile television devices. “Some members will distribute and sell devices. They will not be passive investors.”
Mutloatse hailed the investment as a “major step”, saying it was the first time an organised black business grouping had invested in cutting edge technology in the media sector. He said the move was likely to have a major impact on ownership, control and management demographics in South Africa.
The Mobile TV Consortium intends to broadcast digital television and radio using digital multimedia broadcasting, a South Korean broadcasting technology standard.
It completed phase one of trials in August last year and phase two, which concludes in December, is under way.
The consortium will submit an application to the Independent Communications Authority of SA this week for a subscription broadcasting licence to offer pay-TV services and hopes to launch within three months of being licensed.