Fin24

SACP opposed to Avusa takeover

2012-06-21 18:09

Johannesburg - The proposed Avusa [JSE:AVU] takeover by Mvelaphanda was a deliberate attempt to create a media empire, the SA Communist Party (SACP) said on Thursday.

"The SACP is strongly opposed to concentration of the ownership of media in a few monopolies," spokesperson Malesela Maleka said in a statement.

"Monopoly in media poses one of the most serious threats to diversity of opinion and media freedom."

Last week, the Mvelaphanda Group (Mvela) announced a R3bn cash-and-share offer to buy the media group Avusa.

The offer would be made through its wholly-owned subsidiary, Richtrau No 229.

Mvela currently owns 21.92% of Avusa, also through Richtrau.

The group is offering R24 per Avusa share - representing a 19% premium of its average share price over the past 30 days - or a share exchange.

Avusa shareholders could choose to exit the investment or receive 1.478 Richtrau shares for every Avusa share they own.

Maleka said modern democracies needed a choice of politics and ideas.

Choice required access to truly diverse and competing sources of news, literature, entertainment, and popular culture.

"We will be told that should the owners of media houses abuse their power, the public will punish them by exercising their choice not to buy the paper.

"But we all know that, as is the situation in South Africa, there is nothing to choose from in the first place."

He said there would be serious social consequences if this takeover was allowed to go through.

"Power and control of access to information must never be allowed to be in fewer hands," Maleka said.

Comments
  • Hermann - 2012-06-21 18:37

    Shame, why don't they start their own newspaper? Answer is simple: communism is a bankrupt politic - no money, no morals.

  • bokfan.saffer - 2012-06-21 19:31

    I would very much like Mvelephanda aka "friends of of Julius Malema" to declare their commitment to our constitution, an open society and complete editorial freedom. If not then this is a Trojan Horse that must be treated with utmost suspicion.

  • leko.dada1 - 2012-06-21 19:49

    If Mvelapanda is owned by blacks then I support the move...

      Kevin - 2012-06-21 20:55

      What difference does that make, as long as the incoming owners uphold editorial independence and dont turn the newspaers and magazines into propaganda rags.

  • Kevin - 2012-06-21 20:55

    Who gives a damn! Its the avusa shareholders who can decide.

  • phelejoseph.lenonyane - 2012-06-22 04:55

    Oh no! What happened to SACP of yesterdays!! Barking at the wrong tree again!? There's a lot of burning issues that SACP should be focusing now, not this? Or it's because Mvela is owned by Tokyo who is running for ANC top posts challenging Blade's righthand man? Mr Maleka, you are letting us down, big time!!

  • dave.abner.56 - 2012-06-22 05:01

    There is reason to be concerned, mvela is owned by tokyo sexwale who also has presidential aspirations.

  • faizieishlah.shabalala - 2012-06-22 05:12

    Like the SACP didnt want a political Empire

  • kingpin.molema - 2012-06-22 06:27

    The problem with the politics is that they render you so stupid where you end arguing illogically. SACP must just merge with ANC because I don't see they role in broad society

  • alex.smithtoo - 2012-06-22 09:02

    call the kettle black! communists if in power will be the sole distributors of any news. their role in democratic governments is to take over even if poorly supported. look at Russia in 1917, look at post 1945 eastern Europe and many other countries.

  • denny.cray - 2012-06-22 11:24

    "Monopoly in media poses one of the most serious threats to diversity of opinion and media freedom." Another serious threat of course being communism.

  • flysouth - 2012-06-22 15:05

    "Power and control of access to information must never be allowed to be in fewer hands" Is that so? Actually I agree - so when is the ANC going to unbundle SABC TV and Radio?

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