Procurement of set top boxes to be probed

Friday, October 30, 2015

Pretoria - The Department of Communications is set to institute a formal investigation into the procurement of set top boxes (STBs) by the Universal Service and Access Agency of South Africa (USAASA).

The announcement was made by Communications Minister Faith Muthambi while answering questions for oral reply at the National Council of Provinces, in Parliament, on Thursday.

In recent past months, there have been allegations levelled against one of the manufacturers regarding the importation of STBs from China.

USAASA has appointed a panel of 26 manufacturers to produce DTT and DTH set top boxes, antennas and satellite dishes. It has placed orders for STBs with three manufacturers, namely Bua Africa, CZ Electronics and Leratadima during August 2015.

The set top boxes will convert analogue broadcasting signals into digital ones.

“We have since engaged with USAASA to ascertain if these allegations are true or not. These allegations further warrants the department to institute a formal investigation into the entire process of the procurement of STBs, antennas and satellite dishes by USAASA.

“To this end we have engaged the services of the National Treasury, in particular the Fraud and Risk Unit, to conduct an investigation into the procurement process,” she said.

The production of STBs is in progress, she said, and the date as to when the boxes will be available in the market will be announced.

The Broadcasting Digital Migration Programme was handed over to the Department of Communications on 31 January 2015, by the Department of Telecommunications and Postal Services.

This enabled the department to put in motion a process to amend the Broadcasting Migration Policy. Cabinet approved this policy on 4 March 2015, which was ultimately published in a government gazette on 18 March 2015.

By the time the project was handed over to the Department of Communications, USAASA had in November 2014 begun with the process to procure the STBs, antennas and satellite dishes.

Minister Muthambi also confirmed that SENTECH has received sample set-top boxes and technical trials are underway. The expectation is to have set-top boxes by the end of 2015.

The South African Post Office has begun the process to register indigent households to receive free STBs. To date, close to a 1 000 households have been registered.

A qualifying criteria for free STBs has been developed and applicants must prove that they are South African citizens, that their household income is less than R3200 and have a TV license.

“We have noted that the majority of people do not have valid TV licenses … they are in arrears and are unable to settle the debt. The department and the SABC are working together to assist such individuals in order to ensure that the qualifying households are not disadvantaged in the process,” she said. - SAnews.gov.za