Business Report

Black Business Council warns against bypassing BEE laws for Elon Musk’s Starlink

Mthobisi Nozulela|Published

Government is reportedly extending an olive branch to the United States, including circumventing South Africa's BEE laws to accommodate Elon Musk's Starlink.

Image: Brandon Bell / Getty Images via AFP

Black Business Council Chief Executive Officer (CEO) Kganki Matabane warned against amending South Africa’s laws to favour those unwilling to comply with transformation regulations.

This follows reports that the government was considering a proposal to bypass Black Economic Empowerment (BEE) regulations to facilitate the operation of Starlink internet services in South Africa, in an effort to maintain diplomatic and commercial relations with billionaire Elon Musk and the United States (US).

Musk previously criticised the country's affirmative action laws, which were established to address systemic imbalances and inequalities resulting from apartheid.

He also repeatedly claimed that the sole reason his company had not received a licence to operate in South Africa was that he was not black.

In an interview with broadcaster Newzroom Afrika, Matabane disputed claims that Musk’s Starlink had been denied an operating licence because of the entrepreneur’s race, and warned against changing the country’s laws.

"Elon Musk knows that he is not telling the truth. He is not getting the licence not because he is not black, but because he does not want to comply with the laws of this country," said Matabane.

Matabane further emphasised that South Africa should stick to its existing laws and said creating an act specifically to accommodate Musk would not be acceptable.

"We cannot in any way—and that does not happen in any country—you can’t change legislation to suit an individual. We are a sovereign country, we are a constitutional democracy," said Matabane.

"We should stick to the laws, because if we allow one company to circumvent the legislation, then we must allow all the other companies, and then we're going to have lawlessness in South Africa," he said.

"If he qualifies like other ICT companies that qualified for the equity equivalent, then let it be, because he won't be the first one to qualify for that. But if we're going to have an almost like an Elon Musk act, that won't be acceptable."

mthobisi.nozulela@iol.co.za

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