Johannesburg - DStv will not renew its contract with TV station ANN7 when it expires in August, Multichoice announced on Wednesday.

Instead plans will be put in place to sign on a new black-owned channel, the satellite television provider revealed at a press briefing.

Multichoice CEO Calvo Mawela confirmed the termination of the TV's station's services when its contract ends this year. ANN7 was previously owned by the Guptas.

"We will not be renewing ANN7's contract and the channel will not be broadcast on DStv once the contract ends on August 20, 2018.

"In addition, we will ensure processes are put in place to highlight issues of controversy as they arise and we will deal with them swiftly," Mawela said.

Mawela also revealed that the R25 million upfront payment made to ANN7 was neither abnormal or unusual as it was an advancement on a re-negotiated contract.

The Multichoice executive further revealed that while no evidence of corruption and illegal activities was discovered in its probe into the saga, he admitted that mistakes were made in its dealings with the channel.

These include a failure to do a comprehensive due diligence on ANN7 and poor management with regards to communication around the Gupta-owned channel.

Mawela also addressed allegations around the relationship with the Guptas and Multichoice's contract the South African Broadcasting Corporation (SABC).

"We can confirm. that it is clear that Mr [Imtiaz] Patel's previous relationship with Guptas played no role in the terms negotiated for the ANN7 and that he acted in the interests of the company at all times," he said.


Multichoice came under fire after reports emerged that the company paid ANN7 millions of rand in exchange for political influence over government's position on set-top boxes.

It also emerged that MultiChoice sought to pay the SABC R100 million for its 24-hour news channel in exchange for similar influence.

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