Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      DStv chops channels as Canal+ leans harder on sport

      DStv chops channels as Canal+ leans harder on sport

      7 August 2026
      Eskom fixed the fleet and the customers left

      Eskom fixed the fleet and the customers left

      7 August 2026
      Starlink LEO rival gaining momentum

      Starlink LEO rival gaining momentum

      7 August 2026
      ByteDance goes big - very big - on AI

      ByteDance goes big – very big – on AI

      7 August 2026
      ICT is becoming the centre of gravity at Reunert - Anthonie de Beer and Rob Godlonton

      ICT is becoming the centre of gravity at Reunert

      6 August 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Treasury tight-lipped over set-top box probe

    Treasury tight-lipped over set-top box probe

    By Gaelyn Scott21 September 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    remote-control-640

    National treasury is keeping mum over claims that it has recommended the suspension of South Africa’s controversial set-top box production.

    Set-top boxes decode digital signals for analogue television sets and government plans on subsidising 5m poorer households as part of a broadcast migration process.

    Last year, the Universal Service & Access Agency of South Africa (Usaasa) appointed 27 service providers in a multibillion-rand deal for the supply of equipment such as set-top boxes.

    Production of the boxes, though, has already hit a snag this year.

    Usaasa last week said it has suspended production amid communication minister Faith Muthambi’s challenge of a supreme court of appeal ruling over the encryption of the boxes.

    But the set-top box tender risks further complications as Muthambi says, in a speech posted on her department’s website, that a treasury probe has also recommended a suspension of the production amid issues over the tender process and its costs.

    Muthambi, in October last year, requested that treasury probe the procurement of the set-top box tender. And, she now says the findings of treasury’s report have been concluded.

    “The report recommended that the production process of set-top boxes be stopped with immediate effect and a process that will lead to the integrity and value for money be initiated,” said Muthambi.

    Communications minister Faith Muthambi
    Communications minister Faith Muthambi

    Muthambi further said the recommendation from treasury was that the “process may be faced with the legal challenge and that with the current situation, the programme will not realise its objective of providing 5m set-top boxes in consideration of the current funding”.

    In the speech, which Muthambi’s office claims she read to parliament last week, the communications minister said the probe found that Usaasa allegedly contravened its own supply chain management policy in an appointment of EY (formerly Ernst & Young) by not following a competitive bid.

    Muthambi said the probe has further raised issues such as the appointment of companies part of the bid evaluation committee, EY management costs, and the evaluation and adjudication of bids.

    Other issues revolve around pricing of the set-top boxes, said Muthambi in the speech document.

    “When allocating supply volumes by Usaasa, companies that quoted lowest prices were not granted volumes. Instead prices were negotiated upwards and not downwards leaving the cost of set-top-boxes procured at 37% above the market price at retail. This is in contravention of the supply chain management and Public Finance Management Act provisions for ‘value for money’,” said Muthambi.

    “The national treasury revealed that Usaasa had already received an amount of R1,6bn in their bank account. Usaasa has earned interest amounting to R127m. The report further reveals that Usaasa spent R10,2m out of the interest earned which national treasury indicates that it is prohibited to spend interest earned from subsidy funding without obtaining its permission which Usaasa did not obtain,” Muthambi added.

    Meanwhile, treasury, its office of the chief procurement officer and its office of the accountant general have refused to comment on Muthambi’s claims about the findings of the probe.

    “Their response is that they will not respond and that issues related to this should be forwarded to department of communications,” treasury spokesman Xolisa Dodo said via e-mail.

    Muthambi’s spokesman said she, together with relevant players, are still studying the document.

    “The department has received the report and recommendations from national treasury, and is in consultations with Usaasa and the department of telecommunications & postal services (which provides an oversight for Usaasa),” said ministry spokesman Mish Molakeng.

    Marian Shinn
    Marian Shinn

    “It is only after these consultations that the department will be able to make further announcements on the next steps to be followed”, Molakeng said.

    Complicating matters is that while Muthambi’s department runs South Africa’s digital migration process, Usaasa reports to telecoms minister Siyabonga Cwele.

    Usaasa late last week said it “cannot confirm or deny the information” of the claims contained in Muthambi’s speech about the probe.

    “The department of communication has recently handed the investigation report to Usaasa and the telecoms department,” Usaasa CEO Lumko Mtimde said.

    “Usaasa is studying the report and will decide on the way forward once the consideration is concluded and the board had deliberated on the report,” Mtimde said.

    Meanwhile, telecoms ministry spokesman Siya Qoza said late last week that the ministry had received the findings of the probe and was studying it.

    Democratic Alliance MP Marian Shinn on Wednesday also called on Muthambi to immediately release the findings of the probe.

    “At last week’s joint parliamentary committee hearing into the status of the broadcast digital migration programme, minister Muthambi, who is the custodian of the programme, neglected to mention in her presentation that the enquiry had been instigated and had finished its work,” Shinn said.

    “In response to a question from me, she admitted that the report had been received and that relevant action was still being considered. She promised to make the report public when the decisions on appropriate action had been taken. I now call on her to make the full report immediately available.”

    Amid these disputes, MPs in parliament last week criticised Muthambi for the slow march to digital migration in South Africa.

    South Africa missed an International Telecommunication Union deadline in June last year to switch over to digital migration.

    But in a statement last week, the communications minister’s office said that the digital migration project is “well on track” with over 30 000 households in the Northern Cape, Free State, Mpumalanga and Limpopo having registered with the South African Post Office to receive set-top boxes.

    Fin24

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    EY Faith Muthambi Lumko Mtimde Marian Shinn Siyabonga Cwele Usaasa
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEFF roasts Vodacom over data costs
    Next Article Lack of spectrum keeping prices high: MTN

    Related Posts

    Communications minister Solly Malatsi. Image c/o DCDT

    Usaasa’s 30-year run nears its end

    23 April 2026
    How a connectivity levy became a tax on telecoms

    How a connectivity levy became a tax on telecoms

    17 April 2026
    Usaasa publishes framework for universal service fund

    Usaasa publishes framework for universal service fund

    24 February 2026
    Company News
    African Bank signs on as GEC+Africa 2026 partner

    African Bank signs on as GEC+Africa 2026 partner

    7 August 2026
    What a cloud review reveals about how a company actually runs - LSD Open

    What a cloud review reveals about how a company actually runs

    6 August 2026
    Manufacturing from a garage is now a realistic business plan - MaxLaser

    Manufacturing from a garage is now a realistic business plan

    6 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    DStv chops channels as Canal+ leans harder on sport

    DStv chops channels as Canal+ leans harder on sport

    7 August 2026
    Eskom fixed the fleet and the customers left

    Eskom fixed the fleet and the customers left

    7 August 2026
    TCS+ | Specops' Darren James on continuous trust in an AI world

    TCS+ | Specops’ Darren James on continuous trust in an AI world

    7 August 2026
    Starlink LEO rival gaining momentum

    Starlink LEO rival gaining momentum

    7 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}