Vodacom: presidency responds

Cape Town - President Jacob Zuma's office on Thursday spoke for the first time on the weekend's failed High Court bid to halt cellular giant Vodacom's listing on Monday, saying the incident has proven that SA has reliable laws to protect investors' rights.

Collins Chabane, minister in the presidency in charge of monitoring and evaluating government performance, also said that trade union Cosatu - which brought the court application together with the Independent Communications Authority of South Africa - was well within its rights to attempt legal means to stop the listing.

"There is no need for anybody to panic," Chabane said.

"The test was whether South Africa has reliable and consistent laws to ensure that investors are not negatively affected. If we have a duty to protect the interests and rights of investors, then we have the same duty to others who also have rights."

Chabane said he hopes that a proposed meeting between Vodacom and Cosatu will address the union's concerns.

Communications Minister Siphiwe Nyanda has not yet commented on the failed court bid. However, the department's deputy director-general for finance and ICT enterprise development, Harry Mathabathe, said that Cosatu's move had been a surprise, given that government has engaged Cosatu affiliate the Communications Workers Union since the deal was mooted in 2007.

Mathabathe said it was government's firm view that the deal would be beneficial to the country, especially for competition in the telecoms sector and for much-needed expansion.

- Fin24.com