CAPE TOWN - "Multichoice's decision is suspicious, hypocritical and deeply regrettable because it will result in ANN7 possibly retrenching some of their workers because of loss of revenue," says the Congress of South African Trade Unions (Cosatu).
Cosatu statement comes after Multichoice on Wednesday announced that it will not be renewing the broadcasting contract with the news channel ANN7 when it comes to an end in August.
Multichoice CEO, Calvo Mawela admitted that they failed to perform due deligence on ANN7.
"We have reasons to suspect that Multi-choice's decision was conveniently political and that they succumbed to the pressure that has been exerted by a litany of lobbyists," Cosatu said in statement.
Meanwhile, Mawela denied allegations that the money that was paid to ANN7 had something to do with MultiChoice’s stance on digital migration.
The workers federation further revealed that it shall be engaging with its affiliate - the Communication Workers Union about this latest decision by Multi-choice.
"Multi-choice will continue to do as they please because they are a monopoly but this cannot go unchallenged. If there was an illegal business relationship between these two organisations , we need to allow the law enforcement agencies to investigate and expose that without jumping to conclusions". Cosatu's statement read.
The National Editors Forum (Sanef) said in a statement, "We hope that MultiChoice's decision was not influenced by the latest developments in the political landscape and by complaints by people who do not approve of the channel's stated political preferences".
Sanef said it would seek further clarity from Multichoice on the decision and on Mawela's statement.
The National Freedom Party believes that the move by Multi-Choice has not been considered holistically, and it will be an add-on to the SA's highest employment rate.
"Multichoice now needs to go through a transformation period, their decision to end ANN7 contract is yet another attack against Black Industrialist. Mr. Mzwanele Manyi must be fought separately when fighting Guptas. By the way he saved hundreds of jobs when he bought the news channel and he must be credited for that," NFP statement read.
- BUSINESS REPORT ONLINE