Written By: Tsholofelo Mothibi
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September 5, 2012
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Posted In:
A DELAY by the Director-General (DG) of the Department of Science and Technology, Phil Mjwara, in providing critical funding to South Africa’s only microsatellite company, SunSpace and Information Systems, might see the company close its doors by the end of September 2012. According to The Democratic Alliance’s Shadow Minister of Science and Technology, Junita Kloppers-Lourens, Cabinet approved the acquisition of a majority equity stake in SunSpace in February 2010, but no further action has been taken. Kloppers-Lourens said it was unacceptable that the transaction has still not been concluded two-and-a-half years later.
In May 2012 Science and Technology Minister, Naledi Pandor, announced that the Medium-Term Expenditure Framework (MTEF) had made R100million available for satellite development through the African Resource Management Constellation (ARMC) project. It is now estimated that at least R400m will be required to rescue SunSpace and kick-start South Africa’s commitment to the ARMC constellation-of-microsatellites project.
Mjwara maintains that the delay in executing funding was caused by SunSpace’s delay in submitting a business plan, a charge that Kloppers-Lourens refuted as SunSpace contends that they submitted the business plan timeously – with due diligence studies recommending the equity deal completed and submitted in time.
In 2009, SunSpace employed a total of 93 staff members comprised of engineers, scientists and technicians but currently, there are 43 vacant posts and SunSpace is unable to pay any of its employees. The monthly salary bill amounts to R2.3million, and the amount in arrears over 22 months comes to R45millions. Kloppers-Lourens said it is imperative that government do everything in its powerto retain these scarce skills as the development of human capital is critical to the development and adoption of new technologies, without which the economy cannot grow sustainably.
Source:
http://thenetworks.co.za/2012/09/south-african-satellite-company-to-close-doors-due-to-lack-of-funding/