ANC political party's chief whip Jackson Mthembu calls for a parliamentary investigation into MultiChoice over dubious ANN7 and SABC dealings: 'If we want to call that State Capture, I have no problem'.

Dr Jack & Curtis cartoon on Radio 702's EyewitnessNews (EWN) 


Jackson Mthembu, the ANC political party's chief whip on Tuesday called for an urgent parliamentary investigation into media conglom Naspers and its pay-TV unit MultiChoice amidst a growing scandal of allegations regarding improper corporate influence by the pay-TV company on South Africa's digital TV process.

Naspers and MultiChoice are increasingly mired in a barrage of damaging news headlines and revelations regarding MultiChoice's alleged undue corporate influence on the controversial Gupta family's ANN7 (DStv 405) channel and the SABC to allegedly help influence the South African government's policy on digital TV in MultiChoice's favour.

Jackson Mthembu, the ANC communications committee chairperson, addressed journalist at the ANC's Luthuli House headquarters on Tuesday afternoon ahead of the political party’s 54th national elective conference.

"The matter should be investigated and all those who might have done things not in accordance with our stated objectives must be called to account after a proper investigation," Jackson Mthembu said.

"Now if we want to call that state capture, I have no problem."

"If you want to benefit and you then want to influence government policy towards your benefit as a private citizen or corporate citizen, indeed you might be trying to capture the state for your benefit," Jackson Mthembu said.

At issue is whether the media conglom's lucrative pay-TV unit is or was involved in undue pressure to get the controversial Gupta family through their ANN7 channel, and the SABC, to exercise pressure in return for getting their TV news channels carried on MultiChoice's DStv satellite pay-TV platform.

Explosive, leaked meeting transcripts between MultiChoice and the South African public broadcaster the SABC, as well as #GuptaLeaks contracts between MultiChoice and the controversial ANN7 D(Stv 405) channel showing massive payments from DStv to the Guptas, have raised multiple serious questions over corporate impropriety.

MultiChoice told the SABC it would pay the broadcaster R100 million for the SABC News channel but but only on the strict must-have contract clause condition that the SABC must support MultiChoice's stance on conditional access (CA) for digital television.

MultiChoice also dramatically upped its payments from R50 million per year to R100 million per year and then R141 million per year, as well as a questionable, additional R25 million payment to the Guptas for the low-rated, bad quality, mistake-filled and often criticised ANN7.

MultiChoice is paying ANN7 more despite its barely there low ratings than eNCA (DStv 403) that has more than 50% of the overall TV news audience share.

It's all created the perception that MultiChoice has paid kickbacks to both the SABC and ANN7 to use its influence to get set-top box (STB) encryption dropped from government-subsidised STBs in the switch to digital terrestrial television (DTT).

MultiChoice and Naspers that have denied the kickbacks allegations and have been very slow to respond to the growing avalanche of criticism and calls for parent company Naspers and its chairperson Koos Bekker and CEO Bob van Dijk - not MultiChoice - to launch an independent investigation into the shocking allegations.

On Tuesday Naspers shares tumbled 4% on news that the United States law firm, Pomerantz - specialising in class action securities law suits - has started its own investigation into possible Naspers securities fraud and other unlawful business practices.

Naspers shares tumble more than 4% on Tuesday on news that US law firm Pomerantz is investigating Naspers and could bring a possible class action law suit from Naspers investors.

Dr Jack & Curtis cartoon on Radio 702's EyewitnessNews (EWN) 


Naspers chairperson Koos Bekker is now branded a South African TV villain as an ongoing torrent of bad press continues to engulf the embattled Naspers leader and its pay-TV arm MultiChoice over a widening possible "State Capture" scandal swirling.

Naspers and MultiChoice are being dragged deeper and deeper into negative headlines inflicting serious damage to these brands and brand reputations over its alleged dubious dealings with, and massive payments to, the controversial Gupta family's ANN7 (DStv 405) TV channel and the SABC.

At issue is whether the mega-television behemoth is or was involved in undue pressure to get ANN7 and the SABC to exercise pressure in return for lucrative pay-for-play channel contracts on DStv, and got the South African government to change its encryption policy for set-top boxes (STBs) for the country's faltering switch from analogue to digital TV.

Explosive, leaked meeting transcripts between MultiChoice and the South African public broadcaster the SABC, as well as #GuptaLeaks contracts between MultiChoice and the controversial ANN7 D(Stv 405) channel showing massive payments from DStv to the Guptas, have raised multiple serious questions over corporate impropriety.

MultiChoice told the SABC it would pay the broadcaster R100 million for the SABC News channel but but only on the strict must-have contract clause condition that the SABC must support MultiChoice's stance on conditional access (CA) for digital television.

MultiChoice also dramatically upped its payments from R50 million per year to R100 million per year and then R141 million per year, as well as a questionable, additional R25 million payment to the Guptas for the low-rated, bad quality, mistake-filled and often criticised ANN7.

MultiChoice is paying ANN7 more despite its barely there low ratings than eNCA (DStv 403) that has more than 50% of the overall TV news audience share.

It's all created the perception that MultiChoice has paid kickbacks to both the SABC and ANN7 to use its influence to get set-top box (STB) encryption dropped from government-subsidised STBs in the switch to digital terrestrial television (DTT).

MultiChoice and Naspers that have denied the kickbacks allegations and have been very slow to respond to the public perception brand and reputation crisis, have been overly arrogant where it did respond and in instances where executives spoke publicly.

On Tuesday Naspers shares tumbled over 4% on news that the United States law firm, Pomerantz - specialising in class action securities law suits - has started its own investigation into possible Naspers securities fraud and other unlawful business practices.

On Tuesday Naspers caused the worst daily loss on the Johannesburg Stock Exchange (JSE) in two months since September as its share price sagged to R3 520.

Pomerantz said it is looking for Naspers investors who want to join a possible class action case against Naspers after Naspers' American Depositary Receipt price fell 5.58% on 1 December 2017.

The MultiChoice board on Friday announced that it is starting an internal investigation of itself; with parent Naspers that said it won't get involved as public and investor criticism over Naspers and MultiChoice's slow and insufficient response to the growing scandal keeps building.

Naspers issued a statement on Friday claiming it's being victimised and that persistent "baiting" by the media, the public, investors and political parties for Naspers to intervene in MultiChoice's affairs, should stop because it's allegedly "not conducive to an open democracy".

On Tuesday Naspers in a statement said that it had not been informed of any legal action from any of its investors and that it took allegations that it had engaged in business malpractice seriously.

Naspers and MultiChoice now facing a possible class action law suit in America as Pomerantz law firm investigates claims on behalf of Naspers investors.

Media conglom Naspers and its pay-TV arm MultiChoice could now be facing a possible class action law suit in America after an America law firm announced that it's starting an investigation on behalf of Naspers investors into Naspers.

It's the latest fallout amidst the widening scandal of allegations of corruption, collusion and undue corporate influence from Naspers' MultiChoice unit to allegedly try and sway and influence South Africa's long-stalled digital migration switch from analogue to digital TV.

Explosive, leaked meeting transcripts between MultiChoice and the South African public broadcaster the SABC, as well as #GuptaLeaks contracts between MultiChoice and the controversial ANN7 D(Stv 405) channel showing massive payments from DStv to the Guptas, have raised multiple serious questions over corporate impropriety.

MultiChoice told the SABC it would pay the broadcaster R100 million for the SABC News channel but but only on the strict must-have contract clause condition that the SABC must support MultiChoice's stance on conditional access (CA) for digital television.

MultiChoice also dramatically upped its payments from R50 million per year to R100 million per year and then R141 million per year, as well as a questionable, additional R25 million payment to the Guptas for the low-rated, bad quality, mistake-filled and often criticised ANN7.

MultiChoice is paying ANN7 more despite its barely there low ratings than eNCA (DStv 403) that has more than 50% of the overall TV news audience share.

It's all created the perception that MultiChoice has paid kickbacks to both the SABC and ANN7 to use its influence to get set-top box (STB) encryption dropped from government-subsidised STBs in the switch to digital terrestrial television (DTT).

MultiChoice and Naspers that have denied the kickbacks allegations and have been very slow to respond to the public perception brand and reputation crisis, have been overly arrogant where it did respond and in instances where executives spoke publicly.

Naspers' CEO Bob van Dijk and chairperson Koos Bekker both bristled with hardly contained anger and irritation in a few media interviews done saying Naspers isn't going to get directly involved in dealings with its MultiChoice subsidiary.

The bad and slow corporate crisis communication combined with the arrogant and caustic attitudes of Koos Bekker and Bob van Dijk have done little to sway public sentiment and to create any sympathy for Naspers and MultiChoice.

After a week, the MultiChoice board finally announced that MultiChoice will launch an internal investigation into itself on the matter.

MultiChoice didn't specify in its announcement, and didn't respond when asked if the outcome of the investigation will be made public.

Now an American law firm, Pomerantz LLP is looking for Naspers investors who want to start a class action law suit against Naspers and in a public statement says "Pomerantz LLP is investigating claims on behalf of investors of Naspers Limited".

"The investigation concerns whether Naspers and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices."

Pomerantz has now created an online page where Naspers investors can join a possible class action suit.

"On December 1, 2017, Naspers reported that its wholly-owned television unit MultiChoice had initiated an investigation into whether improper payments were made to ANN7, a South African news channel owned by the politically-connected Gupta family."

"According to local media, citing leaked emails, MultiChoice substantially increased its annual payment to ANN7 from R50 million to R141 million rand ($10 million) over the past two years."

"On this news, Naspers' American Depositary Receipt price fell $3.05, or 5.58%, to close at $51.60 on December 1, 2017."

"The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation," says the law firm.

Pomerantz says it fights "for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The firm has recovered numerous multi million dollar damages awards on behalf of class members."

The company said Naspers investors can contact the American law firm by reaching out to Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980

As the scandal that has engulfed DStv keeps growing over dealings with the Guptas and ANN7, MultiChoice finally relents after public pressure; says it will now investigate possible corruption.

MultiChoice has finally bowed under growing public pressure as a widening scandal involving its massive payments to the controversial Gupta family for the ANN7 (DStv 405) channel has engulfed the pay-TV operator running the DStv service, and said on Friday morning that MultiChoice will now conduct an investigation into possible corruption and governance failures.

On Tuesday this week TVwithThinus asked MultiChoice if it will possibly undertake or is going to undertake any investigation following the various #GuptaLeaks emails, contracts and email trail linking MultiChoice, the disgraced former minister of communictions, the Gupta family and the ANN7 TV channel.

MultiChoice didn't want to give any clear yes or no answer and simply said in response to the media enquiry that there was nothing unusual or inappropriate about its interactions with the minister and its contract with ANN7.

The past week, since last Friday's latest revelations of allegedly inappropriate dealings between MultiChoice and the Guptas over ANN7 - including questionable payments together with exorbitant amounts of money paid by DStv to the Guptas for the highly-criticised and low quality ANN7 channel - MultiChoice and Naspers has been enveloped in a growing tsunami of bad press and an avalanche of public criticism.

MultiChoice upped its payments to ANN7 from R50 million per year to R100 million per year and then a whopping R141 million per year and threw in a questionable R25 million once-off payment.

These MultiChoice payments have been made while ANN7 has remained mired in biased, slanted coverage and has been accused of fostering racial discord in South Africa through its one-sided coverage - particularly contantly slating politicians and people who are against State Capture and president Jacob Zuma's alleged looting of the public purse.

Meanwhile ANN7's on-air mistakes and embarrassing gaffes, including low production values continues unabated.

On Friday morning MultiChoice issued a statement saying that because MultiChoice's reputation has been "negatively impacted" it will now launch a probe into the ANN7 deal and whether there's been any corporate governance failures at MultiChoice".

MultiChoice is investigating itself, instead of any independent, external investigation by group owner Naspers where Naspers chairperson Koos Bekker has been dismissive of criticism from the public and investors about possible corrupt dealings by MultiChoice, and where CEO Bob van Dijk bristled with irritation in the week when asked by Naspers isn't investigating the allegations.

MultiChoice isn't saying whether the outcome of the investigation will be made public once it has been concluded.

In the MultiChoice statement, attributed to Don Eriksson, an independent non-executive director in his role as the chairperson of MultiChoice's audit and risk committees, Don Eriksson said the MultiChoice board is "aware that the ANN7 channel has caused real public concern".

"The MultiChoice board has read the various media reports alleging that MultiChoice has entered into an irregular relationship for the carriage of the ANN7 channel".

"The board is aware that the ANN7 channel has caused real public concern because of the allegations of corruption levelled at the former owners of the channel".

"These allegations have negatively impacted the reputation of MultiChoice. The MultiChoice board has therefore instructed its audit and risk committees to assess whether there has been any corporate governance failures at MultiChoice and report back to the board".

"Based on what is contained in that report, the MultiChoice board will take the necessary action; assess whether the total amount paid to ANN7 is comparable to payments made for other locally-produced channels with due consideration being given to the estimated costs of running a 24-hour news channel."

MultiChoice says it will also "draw on any expertise and skills necessary in order to fulfil the mandate given by the board".

"In addition, Adv Kgomotso Moroka, one of the MultiChoice board members, was requested by the board and has agreed to, assist the audit and risk committees in this matter".

After MultiChoice paid the controversial Gupta family - involved in widespread allegations of State Capture and improper transactions with multiple state-owned enterprises and other companies worth billions of rand - the Guptas earlier this year sold ANN7 to Mzwanele "Jimmy" Manyi's Afrotone Media Holdings.

Democratic Alliance reveals explosive transcript of 'clandestine' SABC meeting where then MultiChoice CEO Imtiaz Patel allegedly says DStv would pay SABC to support change to the government's digital TV in favour of MultiChoice.

The Democratic Alliance's member of parliament Phumzile Van Damme has revealed an explosive transcript of what it calls a "clandestine" SABC meeting on 6 June 2013 - suggesting that the pay-TV operator MultiChoice sought to pay the SABC R100 million for its 24-hour SABC News (DStv 404) channel in exchange for the SABC's influence to change South Africa's digital terrestrial TV process in favour of MultiChoice.

Phumzile Van Damme says the minutes form part of hundreds of documents provided by the SABC in December 2016 to the ad hoc committee on the SABC inquiry.

According to the DA, the transcript of the SABC meeting support allegations in media reports last week that MultiChoice paid the controversial Gupta family millions of rand for its highly-criticised ANN7 (DStv 405) channel on DStv, in exchange for similar influence over the government's position on set-top boxes (STBs).

The release of the meeting's transcript awkwardly comes on the day that Naspers, MultiChoice's parent company, is releasing its interim results, with Naspers chairperson Koos Bekker who has not yet come out publicly to announce any possible investigation by Naspers into the flurry of allegations.

MultiChoice is the latest company to be caught up in the messy dealings of the now-notorious Gupta family embroiled in allegations of State Capture in South Africa.

According to the DA political party, the SABC minutes reveal a "clandestine" meeting attended by the former SABC board members and executives, including the nowdisgraced Ellen Tshabalala, the controversial and shamed Hlaudi Motsoeneng, Lulama Mokhobo who quit as SABC CEO, and Jimi Matthews who eventually quit as acting SABC CEO, with the then CEO of MultiChoice, Imtiaz Patel.

Imtiaz Patel is at pains during the meeting to explain that MultiChoice doesn't ordinarily pay TV stations for their news channels to be carried on DStv, but that he would be able to convice the MultiChoice board to pay for the SABC's SABC News channel, if a set of "deal breaker conditions" in MultiChoice's favour were met.

During the meeting Imtiaz Patel tells the SABC:

“We would not normally pay for a news channel. Okay. We don’t. There’s a unique relationship with e.tv that everybody espouses etc. It’s got unique conditions. They’re supposed to supply us with many more channels and it’s quite tricky at this point in time. But, besides that we don’t pay for any other news channel, anyway, Okay.”

Imtiaz Patel goes on to say:

“…we need to justify to our Board to say why would we pay you R100 million a year which is a lot of money. Okay. It’s after tax money. To make R100m net you have to make R150m or R200m, R300m in turnover. We are looking for the excuse and the excuse for us is to be able to justify to our Board that you are giving us something in return. 

What are you giving us in return for the R100m? We’re saying you giving us a news channel, you’re giving us a general entertainment channel from your archives, your old, you know. We are less focused on the core elements of it being new content. And we’ve been sort of quite open about it with Lulama, saying even if it’s old stock. 

And thirdly, we are saying we also need to justify this problem of conditional access [unencrypted set-top boxes] is a big problem. And in order to justify that we’re saying in addition to that, your additional channels will be available on our platform.”

Imtiaz Patel also says:

So, in addition to the R100m in cash, you will be getting a lot of advertising revenue, probably the equivalent, even more, I don’t know, I don’t know the details, I don’t know to what extent, you know, given that kind of base, how much you can monetise it. 

In return, we can justify to our Board that, we are paying this extraordinary sum of money but we are getting something for it. That was the simple logic that we applied in our own minds. So I’m giving you a sense and therefore I’m hoping that if we can co-create a solution, we are also happy to co-create a solution. 

We are not coming here saying this is, you know, this is the be all and end all, you know. But I must say though, Lulama, that this is the very important point for us. It’s a deal breaker point, I’ll be honest. And I have re-iterated it. I have said this to you before. 


The DA in a statement about the meeting's transcript says that "the implications of MultiChoice paying kickbacks in order to not solidify its dominance in the pay-TV sector, but also secure influence over government policy in its favour, are serious".

"It speaks to a company willing to stop at nothing, including paying kickbacks to the Gupta family, thus supporting State Capture, in order to get its way".

The DA in its statement says that "while companies should be allowed the space to conduct business in a free market system, there must be adherence to business ethics and the law."

"This matter, and in particular the payments, now require thorough investigation by the South African broadcasting regulator, the Independent Communications Authority of South Africa (Icasa). The DA has written to Icasa requesting an investigation," says the party.

"The DA had hoped that following media reports about ANN7 last week, MultiChoice would take the opportunity to play open cards by revealing all."

"It refused to do so. It is now left to Icasa to reveal the truth."

MultiChoice in response to a media enquiry from TVwithThinus seeking comment from the company after the Democratic Alliance meeting and transcript release, says: "“This was not a clandestine meeting. No kickbacks were paid. This was part of a negotiation meeting with the SABC. The final decision on this proposal lay with the SABC board".

The SABC has also been approached for comment about the DA party's statement and the transcript of the SABC meeting, and the public broadcaster's reaction will be added here when received.


Other fascinating titbits from the transcript reveals:

- According to the transcript, Lulama Mokhobo is clearly on such friendly terms that she uses the nickname "Imi" for Imtiaz Patel in the meeting, instead of his full name.

- Nolo Letele, MultiChoice South Africa chairperson, also attended the meeting.

- The then SABC chairperson Ellen Tshabalala tells MultiChoice: "Since you have presented this condition [unencrypted access], if you can just give a day for us to bounce it to the minister of communications, because we have an unclear position on the matter':

- Then MultiChoice CEO Imtiaz Patel reveals that MultiChoice and the SABC previously wanted to do an agreement in terms of Olympic Games broadcast coverage: "'Unfortunately your previous board, its easy to ... we can rubbish them now, they’re gone. But they didn't sign the agreement unfortunately".

- The then SABC CEO Lulama Mokhobo is clearly hungering after the premium type pay-TV channel content for the SABC that is available to DStv's pay-TV subscribers. 

She tells Imtiaz Patel: "It will be good for us to get PBS [public broadcasting system] type content, something like the History Channel, Discovery Channel - those kinds of channels, the ones that really talk to us". 

- Jimi Matthews to MultiChoice deadpans on getting the SABC News channel up and running: "I engage with the bureaucracy of this place [SABC]'.

The then SABC CEO Lulama Mokhobo then responds: "Oh, Jimmy."

- The then SABC chairperson Ellen Tshabalala: "I want to request that we keep this matter confidential" and says: "We know how print media reacts to this kind of thing".

Minute of the Meeting Between the SABC MultiChoice 6 June 2013 by Thinus on Scribd

Political parties demand parliamentary inquiry into MultiChoice's allegedly 'corrupt' and 'unethical' dealings with Gupta-linked ANN7 and Faith Muthambi.

Political parties are demanding a parliamentary inquiry into MultiChoice's allegedly "corrupt" and "unethical" dealings with the controversial Gupta family and its highly-criticised ANN7 channel, as well as the controversial former minister of communications, Faith Muthambi.

Both the Economic Freedom Front (EFF) and Democratic Alliance (DA) reacted swiftly to fresh revelations that MultiChoice is paying ANN7 a staggering R141 380 000 per year for the low-rated and little watched channel.

ANN7 has been much criticised for its ongoing mistakes, biased coverage and for allegedly inciting racial discord in South Africa using DStv's platform to do so.

MultiChoice also made a dubious R25 million once-off payment to the Guptas for ANN7.

Both the Economic Freedom Front (EFF) and Democratic Alliance (DA) political parties on Friday called for a parliamentary inquiry into MultiChoice's allegedly "corrupt" dealings with the Guptas and politicians over the ANN7 channel.

The DA's member of parliament Phumzile Van Damme told TVwithThinus that "we believe that this issue be investigated by parliament, as part of the broader State Capture inquiries undertaken by the different committees in Parliament."

"We are in particular seriously concerned about MultiChoice, and what appears to be unethical conduct in this regard relating to the Gupta family. We intend on getting to the bottom of this."

The EFF's member of parliament Mbuyiseni Ndlozi in a statement says "The EFF condemns the corrupt relations of MultiChoice and Faith Muthambi which suppressed competition within the pay-TV industry with disgust".

"The recent revelations in the #GuptaLeaks show how Faith Muthambi as minister of communications worked with the Guptas to solicit bribes in exchange for protection of MultiChoice from the competition".

"Koos Bekker's company, MultiChoice, paid millions to the Guptas, through ANN7, in exchange for Faith Muthambi to adopt the policy of unencryption in the set-top boxes for digital terrestrial television (DTT) migration."

"The Guptas, through their influence on Jacob Zuma and Faith Muthambi, managed to guarantee their stay on the DStv platform whilst being remunerated unreasonable amounts of money despite their low audience numbers," says Mbuyiseni Ndlozi.

"It is clear that MultiChoice was paying them for securing a DTT policy in relation to set-top boxes that would maintain them as the sole players in the pay-TV space."

'The EFF calls on parliament to hold an inquiry into the Gupta influence over Faith Muthambi. In this inquiry, companies like MultiChoice must be held accountable publicly for their criminal activities in the sector, suppressing competition in favour of their domination."

"The EFF will also be reporting MultiChoice to the Competition Commission to investigate how they influenced the policy on set-top boxes in favour of their market domination."

More #GuptaLeaks engulfs MultiChoice in growing scandal over its controversial ANN7 contract; says there's nothing wrong paying ANN7 R141 380 000 per year.

More #GuptaLeaks revelations are engulfing MultiChoice in a growing scandal over its controversial ANN7 contract with the Guptas, with MultiChoice saying there's nothing wrong with paying ANN7 an eye-watering R141 380 000 per year for the low-rated, highly criticised and mistake-filled channel.

MultiChoice brand damage continues to increase as MultiChoice is being battered by ongoing new shocking revelations regarding its ANN7 (DStv 405) contract with the controversial Gupta family who are embroiled in State Capture claims.

MultiChoice itself is now being accused of corruption and collusion with the Guptas and tainted politicians like Faith Muthambi, by a growing chorus of the public and political parties.

The Democratic Alliance (DA) political party has given MultiChoice an ultimatum, saying DStv has 48 hours to make its contracts and prior negotiations with the Guptas over ANN7 public, or the DA will request the broadcasting regulator, Icasa, to compel MultiChoice to do so.

The Democratic Alliance and Economic Freedom Fighters (EFF) political parties are also calling for a public parliamentary inquiry into MultiChoice, its dealings and contracts with the Guptas over ANN7, and the former minister of communications, Faith Muthambi.

In shocking new #GuptaLeaks, News24 on Friday dropped a bombshell email trove, showing how MultiChoice made a dubious R25 million payment to the Guptas for its low-rated, biased and mistake-filled trash channel, in addition to upping the money MultiChoice pays to ANN7 from R50 million to a whopping R141 million per year.

The emails revealed that MultiChoice is paying ANN7 R141.38 million as part of its contract for the channel, a channel that stands accused of fostering racial discord, biased and unbalanced coverage and targeting politicians who are against president Jacob Zuma.

According to a 4th channel amendment agreement signed by Glen Marques in September 2015, MultiChoice upped its payment from R50 million to R100 million to a staggering R141 380 000 per year although ANN7 is the least watched of the three local TV news channels with SABC News and eNCA as rivals.

Ironically MultiChoice is splurging more money on ANN7 - although it only has a fraction of the viewership in the form of a paltry 8.9% news audience share - that what DStv is paying eMedia Investment's eNCA (DStv 403) that is now only getting R140.8 million from MultiChoice although it is the most watched TV news channel on all of DStv's platform with over 50% news audience share.

MultiChoice told News24 that when it decided to add ANN7 from the Gupas' Infinity Media Network, "the only other channel on the DStv platform at that stage was eNCA".

MultiChoice then says "The eNCA contract was up for renewal, and there were signs that it was not going to be renewed".

Also raising eyebrows in the latest #GuptaLeaks regarding ANN7 is how a MultiChoice executive, Clarissa Mack - now gone from DStv - directly sent policy documents - a "Effect of presidential proclamation"document in July 2014 to the then minister of communications Faith Muthambi about government policy.

Faith Muthambi, shockingly, then sent this MultiChoice document to Ashu Chawla of the Guptas, detailing how to give Faith Muthambi control over broadcasting in South Africa.

Clarissa Mack also created another document about signal distributors Sentech and Infraco that she sent from MultiChoice to Faith Muthambi - a document Faith Muthambi shockingly also sent to Ashu Chawla.

"See attached Proclamation that President must sign," Faith Muthambi wrote to Ashu Chawla, who then forwarded it to Tony Gupta.

In another eye-popping revelation, the then MultiChoice CEO Imtiaz Patel suddenly got listed as a director, along with Tony Gupta, and Jacob Zuma's son, Duduzane, in the same company, IslandsiteInvestments 255.

MultiChoice says it was only for a day, happened without Imtiaz Patel's knowledge and that he resigned and removed his name from the company register on the very same day he was appointed.


MultiChoice: Nothing unusual about paying ANN7 R141 380 000 per year
After the News24 story, TVwithThinus asked MultiChoice why Clarissa Mack while she worked for MultiChoice sent documents directly to Faith Muthambi and why MultiChoice increased the ANN7 payment from R50 million, then R100 million, to R141.38 million if ANN7 under-performed and received widespread criticism for its content.

MultiChoice was asked why the then CEO Imtiaz Patel was listed as director of a company with Tony Gupta and Jacob Zuma's son Duduzane Zuma and why MultiChoice made a once-off payment of R25 million to the Guptas for ANN7.

MultiChoice says "the fee structure for the ANN7 contract is in line with the costs of developing and running such a channel, and ANN7 is definitely not the highest-paid local news channel on the DStv platform".

"The R25 million fee is also not unusual. In this case, it was a pro rata payment in terms of an amendment agreement."

 The fee structure for the ANN7 contract is in line with the costs of developing and running such a channel, and ANN7 is definitely not the highest-paid local news channel on the DStv platform."

"Regarding our submission to Faith Muthabi: The Presidential Proclamation creating two new ministries didn't make sense to a number of stakeholders in the broadcasting sector," says MultiChoice.

"Several of these stakeholders made submissions to the minister suggesting it be corrected. MultiChoice was one of these, and many of its proposals were rejected."

MultiChoice says "it is standard practice for companies to interact with the industry regulator and government on policy matters, including making proposals on regulatory or legislative issues. There is nothing wrong with that."

MultiChoice didn't specify what it makes of Faith Muthambi sending MultiChoice's policy documents to the Guptas.

"There is absolutely no relationship between our submission on the proclamation, the channel supply agreement for ANN7, and any fees or increase in feed paid for that channel," says MultiChoice.

MultiChoice says "Imtiaz Patel was NOT involved in any business partnership with the Guptas and Duduzane Zuma in IslandsiteInvestments 255. The CIPC records reflect that he was appointed and resigned as a director on the very same day in 2009 - 8 years ago."

Earlier this week MultiChoice said it is not negotiating with ANN7 for a contract extension when the existing contract ends in June 2018.

Political parties demand parliamentary inquiry into MultiChoice's "corrupt" and "unethical" ANN7 deal with Guptas

Both the Economic Freedom Fighters (EFF) and Democratic Alliance (DA) political parties on Friday called for a parliamentary inquiry into MultiChoice's allegedly "corrupt" dealings with the Guptas and politicians over the ANN7 channel.

The DA's member of parliament Phumzile Van Damme told TVwithThinus that "we believe that this issue be investigated by parliament, as part of the broader State Capture inquiries undertaken by the different committees in Parliament."

"We are in particular seriously concerned about MultiChoice, and what appears to be unethical conduct in this regard relating to the Gupta family. We intend on getting to the bottom of this."

The EFF's member of parliament Mbuyiseni Ndlozi in a statement says "The EFF condemns the corrupt relations of MultiChoice and Faith Muthambi which suppressed competition within the pay-TV industry with disgust".

"The recent revelations in the #GuptaLeaks show how Faith Muthambi as minister of communications worked with the Guptas to solicit bribes in exchange for protection of MultiChoice from the competition".

"Koos Bekker's company, MultiChoice, paid millions to the Guptas, through ANN7, in exchange for Faith Muthambi to adopt the policy of unencryption in the set-top boxes for digital terrestrial television (DTT) migration."

"The Guptas, through their influence on Jacob Zuma and Faith Muthambi, managed to guarantee their stay on the DStv platform whilst being remunerated unreasonable amounts of money despite their low audience numbers," says Mbuyiseni Ndlozi.

"It is clear that MultiChoice was paying them for securing a DTT policy in relation to set-top boxes that would maintain them as the sole players in the pay-TV space."

'The EFF calls on parliament to hold an inquiry into the Gupta influence over Faith Muthambi. In this inquiry, companies like MultiChoice must be held accountable publicly for their criminal activities in the sector, suppressing competition in favour of their domination."

"The EFF will also be reporting MultiChoice to the Competition Commission to investigate how they influenced the policy on set-top boxes in favour of their market domination."

M-Net turns 30 years old as it celebrates three decades of bringing viewers in South Africa and across Africa a premium TV experience.

M-Net officially turns 30 years old today - celebrating three decades of bringing viewers in South Africa and across the African continent premium TV content since it changed and revolutionised the face of South African television on 26 October 1986 forever.

It's today - exactly 30 years ago - that M-Net went live in South Africa and broke the stranglehold of the often staid South African public broadcaster's moribund programming.

M-Net introduced viewers to exciting TV content and concepts - from the soaps Loving and Egoli and the latest movies shown without commercial breaks, to M-Net East Net for Indian viewers, a dedicated youth slot, KTV; real magazine and investigative programming ranging from Revue Plus to Carte Blanche, and buzz-worthy reality shows from Idols to Big Brother and beyond.

M-Net started with R50 000 after securing a pay-TV licence in April 1985 and while its start was catastrophic - it lost R3.5 million per month just six months after it started - the Randburg based pay-TV operator started to break even on a monthly basis just two years later and since then, has never looked back.

In 1990 the existence of M-Net, that at that time passed the 400 000 subscriber mark, led to the creation of MultiChoice and its DStv satellite pay-TV service that has grown to provide M-Net supplied as well as global third-party channels to million of DStv subscribers in South Africa and across more than 50 countries in Africa.

Remember M-Net Open Time during which viewers could get unencoded access to the M-Net magic on a daily basis between 17:00 and 19:00? 

Remember the multiracial M-Net continuity presenters - white black, Indian, and coloured - all on one channel together - that presented a vision to South African viewers of not how the country was, but who it could be?

With an M-Net decoder costing R595 and a monthly subscription of R29, viewers gorged on the feast of international content and growing local slate as the pay-TV subscribers started running rings around the SABC, realising that viewers wanted to be treated like consumers, instead of being spoonfed on old series and hokey local programming with bad production values.

It also held true for South African and international sports coverage. 

Creating the SuperSport brand, M-Net revolutionised outside broadcasting for sports events - especially rugby - realising that consumers will pay for premium coverage, in multiple languages, with multi camera-angles and insightful commentary, of live events.

While the kids watched the goofy KTV presenters and dad watched the Currie Cup, mom watched Egoli, the local soap from Franz Marx that set new benchmarks for serialised daily TV storytelling in South Africa and spawned the creation of all the other local soap operas that came after it.

From Survivor South Africa, to Who Wants to be a Millionaire? to Dali Thambo's talk show Night Moves, from Sex Etc. to Trevor Noah's first TV talk show and from the creation of kykNET to Mzansi Magic and M-Net Movies, M-Net has always pushed the boundaries to better what South African television could be.

Idols that started in 2002 on M-Net and that is still on, is as popular, judged by the ratings, as when it first aired 14 years ago while M-Net kept with what worked and added: everything from The Weakest Link and MasterChef South Africa to The Voice South Africa.

As M-Net grew, shows like Big Brother SA grew into Big Brother Mzansi and Big Brother Africa - indicative of M-Net and MultiChoice's continental television expansion drive that became and remain as ambitious as when Koos Bekker in the early 1980's at Columbia University in New York did his thesis on a pay-TV model for South Africa and started to dream about bringing a better world of television to viewers.

M-Net's 30th anniversary celebration will carry on during November. M-Net is running a pop-up channel, M-Net Movies BlockParty on DStv channel 109 during October and will do a M-Net Movies Harry Potter pop-up channel during November.

M-Net is doing a 30th anniversary theme song competition in which 30 viewers can each win R30 000 with their rendition of Queen's iconic theme song A Kind of Magic that M-Net used as one of its theme songs, and there is the The Greatest Movie Ever Made competition. 

A coffee table book is in the works, while M-Net is also producing a new TV special looking back at its three decades as a pay-TV broadcaster that will be shown across M-Net's channels on DStv during November.

From this coming Friday, M-Net and DStv will open three of its DStv Premium channels, M-Net (DStv 101), M-Net Edge (DStv 102) and VUZU AMP (DStv 103) to all DStv Extra and DStv Compact subscribers until Sunday night, 30 October at 23:59.

"M-Net has grown immensely over the past 30 years – from being one pay-television channel to producing more than 40 channels for different audiences across the continent on different platforms," says Yolisa Phahle, M-Net CEO.

"But we wouldn't have been here without the continued support of every single person who finds our kaleidoscope of story-telling entertaining, informative or inspiring."

StarTimes' message to Africa's pay-TV operators: 'In 5 years we will be the digital TV operator with the most pay-TV subscribers in Africa'.

China's StarTimes has a blunt message for MultiChoice, Wananchi, Canal Plus and the African continent's other pay-TV operators: It says in 5 years it will be the biggest digital pay-TV operator in Africa.

Pang Xinxing, the head of StarTimes, the Beijing based pay-TV conglomerate that's been making huge inroads in Africa's fast-growing pay-TV market, has been visiting South Africa this week for the first China-Africa Media Leadership Summit held in Cape Town co-organised by Naspers and StarTimes, as well as for the Forum of China-Africa Cooperation (FOCAC) held in Johannesburg.

Besides the StarTimes brand in the rest of Africa, StarTimes, through StarTimes Media South Africa, now runs the rebranded StarSat pay-TV service in South Africa.

Pang Xinxing is clear: "In five years, we will be the digital TV operator with the most subscribers in Africa," he says.

"We will also strengthen content production by translating and dubbing more Chinese programmes and opening channels exclusively for Chinese programmes in multiple local languages".

Pang Xinxing says StarTimes - that currently has over 4 000 employees - 3 000 of whom are based in Africa - is now considering buying Chinese Football Association League games and introducing African soccer players to Chinese soccer clubs.

StarTimes will gradually start to introduce much more Chinese sports ranging from swimming and diving to gymnastics, table tennis and much more on its African sports channels.

StarTimes new 26 000 m² African headquarters in Nairobi, Kenya will become operational in 2017.

StarTimes says it now has "over 440 authorised channels" on its pay-TV services, featuring news, movies, series, sports, entertainment, children's programmess, fashion, religion, music and lifestyle channels and content.

The channel's on StarTimes' platforms are broadcast in 10 different languages like English, French, Portuguese, Africa indigenous languages and Chinese and StarTimes says that "African channels take up the majority of all the 440 channels".

StarTimes in Africa now has 5 digital TV centres, 11 earth satellite uplink stations and 160 high-powered digital terrestrial television transmitters.

"StarTimes has managed to meet over 700 million African individuals, and is considered to be the fastest-growing and most influential digital terrestrial television (DTT) operator," says Pang Xinxing.

"We have one key goal, which is to enable every African household to have access to, afford and enjoy the beauty of Digital TV".

Pang Xinxing says StarTimes sees itself as assisting China to "create strong and mutually beneficial relationships in China".

Naspers chairperson Koos Bekker at the China-Africa Media Leadership Summit said MultiChoice is also embracing Chinese TV content on its DStv satellite pay-TV service.

"Three years ago we launched the Great Wall of Africa. This is a package of 11 top Chinese language TV channels broadcast all over Sub-Saharan Africa. It serves our Chinese DStv customers, as well as Africans who would like to learn more about this great nation".

According to the latest report of Digital Television Forecast in Sub-Sahara Africa released by Digital Television Study in the United Kingdom, digital television household penetration in Sub-Sahara Africa will soon exceed 50%.

It is estimated that digital migration to DTT will reach almost every African TV household by 2020.

It means that 20 million African TV households will appear in Sub-Saharan Africa by 2020.

Pay-TV revenue in Sub-Saharan Africa is $3.17 billion - estimated to grow by a massive 69% to $5.35 billion by 2020.

BREAKING. Bob van Dijk takes over as new CEO of Naspers; Koos Bekker becoming Naspers chairman from April 2015.

Bob van Dijk (41) is becoming the new Naspers CEO from 1 April 2014 with current CEO Koos Bekker (61) who will take a year off and then become the new Naspers chairperson from 1 April 2015 when Ton Vosloo steps down.

Naspers owns the massive pay-TV operation encompassing direct-to-home (DTH) pay-TV satellite business MultiChoice in South and Southern Africa with brands like DStv, M-Net, SuperSport and the digital terrestrial television service GOtv in Southern Africa.

In 1985 Koos Bekker, following a paper he wrote at Columbia University started M-Net in his early thirties with a group of people, one if the first pay-TV services outside of the United States. At the times Naspers was a 26% backer and Ton Vosloo the M-Net chairperson.

Today the group operates pay-TV services and products across 48 countries in Africa and is available in 7 million households.

In 1997 Koos Bekker replaced Ton Vosloo as CEO of Naspers. Naspers today is the largest media group outside the United States and China and is larger than any in Europe.

BREAKING. Ronnie van Wijk, founding member of M-Net in 1987, dead after a short illness.

Ronnie van Wijk, a founding member of M-Net as a pay-TV broadcaster in South Africa in 1987, has died.

The veteran South African television executive worked for the SABC before moving over to M-Net, and in later years moved on to become the owner of Global Access Telecommunications, a private multimedia digital and TV broadcasting company.

Ronnie van Wijk died on Saturday after a short illness.

As a founding member of M-Net, Ronnie van Wijk helped to set up South Africa's pay-TV broadcaster which over the past 26 years has grown to become a massive multimedia broadcasting company.

At M-Net Ronnie van Wijk served as head of broadcasting services during the fast expanding period of the late 80's and early 90's when M-Net suddenly started to blossom with a growing number of local, South African TV productions such as Carte Blanche, Hot Hits and others.

Later, at M-Net Ronnie van Wijk was also involved in the research, planning and groundwork of "A-Net" - a planned Afrikaans pay-TV channel meant to be a sister channel/TV service to M-Net.

"A-Net" never materialised but out of that plan and spearheading work, grew and developed what was kykNET (DStv 144), the Afrikaans language M-Net channel on MultiChoice's DStv.

Koos Bekker, the CEO of Naspers, and the visionary who had the idea for, and started M-Net, on Monday said he will miss Ronnie van Wijk and called him a "supreme professional".

"When M-Net started in 1985, we first managers were early 30's and totally clueless about television," Koos Bekker tells TV with Thinus. "Ronnie was the first recruit who had actually worked in TV: he was a medium-heavy at the SABC".

"He taught us the basics of TV broadcasting; then he supervised the building of our very first broadcasting studios. I will always be grateful for that adult supervision!"

"Ronnie struck me as a supreme individual: balanced, prudent, very sensible," says Koos Bekker. "He established a professional culture at M-Net that endured all these years. We will certainly miss him a lot!"

M-Net also mourns the death of Ronnie van Wijk. "The M-Net group is deeply saddened to hear about the death of Ronnie van Wijk, one of the South African broadcast media industry stalwarts since 1976," says Kershnee Govender, M-Net's corporate affairs director in a statement.

"As one of the founding members of M-Net in 1986, his innovative spirit, broadcasting knowledge and leadership skills, helped shape and change television in South Africa forever, and pushed the group to become one of the leading broadcasters in Sub-Saharan Africa."

"His role in the birth of M-Net and his contributions to the sustenance and growth to the industry are immeasurable," says Kershnee Govender.

"There are few people in this world that have had as much of an impact on the industry as Ronnie. He will be dearly missed, but his legacy will live forever. Our sincere sympathy, thoughts and prayers go to the Van Wijk family."

Naspers plans to roll out a new pay TV decoder every 18 months to increase video-on-demand (VOD) capacity says CEO Koos Bekker.

Naspers CEO Koos Bekker says the media conglomerate plans to roll out a new pay-TV decoder about every 18 months to keep increasing capacity on the box with more space for movies through the video-on-demand (VOD) service it is offering with movies through DStv BoxOffice as well as the DStv On Demand service.

Earlier in the month I reported that MultiChoice said that a new "connected box" will be launched as a new decoder during the first quarter in 2013. MultiChoice explained that a new DStv decoder would increase the capacity from 20 hours to 175 hours of catch-up content.

A day later MultiChoice said that the timing of a new connected DStv decoder has not been determined yet and that it is speculation that a connected box is coming in the first quarter of 2013.

Naspers, which owns MultiChoice which runs the DStv pay-TV service, announced its half-year financial results on Tuesday.

Naspers reported that its DStv subscribers grew by an additional 187 000 subscribers in South Africa between March 2012 and September 2012. DStv now reaches 4,2 million households in South Africa.

The sale of personal video recorders (PVRs) grew by 90 000, with 747 000 PVR households now existing in South Africa. The DStv BoxOffice service through which DStv Premium subscribers can watch VOD titles, has now reached 400 000 per month.

Naspers CEO Koos Bekker said "we need more and more capacity, so every 18 months we'll double the capacity and with that the number of movies we can bring you".