Munhumutape moves to court over revoked licence

LEKOPANYE MOOKETSI
Correspondent | Tuesday June 22, 2010 00:00

NBBB revoked the licence in January after the company's envisaged pay TV failed to go on air despite numerous extensions. The NBBB cancelled the licence saying the company has contravened a material condition.  'In terms of the said licence condition you were supposed to commence operations by June 30, 2008.  Despite numerous extensions granted to yourselves you have failed to commence operations,' the licencing board stated. However, the MABC claims that the NBBB barred its experts from attending the meeting where the decision to revoke the licence was made.   By this decision, MABC lawyers submit that the company was denied the opportunity of making presentations on various areas of expertise.

MABC claims that the board told its officials that they could only hear evidence from four representatives.  'They were not going to allow the rest to even attend the meeting.  Had the board heard presentations from all the various experts, it would not have made the decision to revoke the applicant's licence but would have allowed the appellant another extension of the commencement date,' MABC lawyers have stated in their grounds of appeal.

They maintain that the NBBB erred by failing to accord adequate weight to the fact that MABC has invested huge amounts of money in the business venture.

The lawyers are claiming that MABC investors have pumped P10 million into the company and secured 200 million Euros for the TV project. The lawyers have stated that MABC TV's preparation to go on air have reached an advanced and irreversible stage that to revoke the licence under the circumstances constitutes a grossly unreasonable decision.

They further claim that the launch of the pay TV was scheduled for November 1 this year.

'A programme of action for the launch has been put in place with payment of the required guarantee to the National Broadcasting Board in the sum of P1.5 million being arranged,' they have stated.

The lawyers submit that the NBBB erred by failing to regard the procedure for awarding similar licences followed in neighbouring jurisdictions. 

They contend that in assessing whether to revoke the licence, the board erred by failing to take into account the effect of the harsh reality of the worldwide economic recession. 'The NBBB erred by failing to consider the importance of the funding in light of the current credit crunch and failed to appreciate the serious commitment the financier is making in injecting huge sums of money despite the current economic melt down.'

They submit that the NBBB failed to accord due weight to the circumstances surrounding the various steps and efforts the company had taken in its efforts to comply with the conditions of the licence, particularly the time of the launch.

'In making its decision to revoke the appellant's licence, the NBBB erred in disregarding the great potential the business venture has in the creation of employment opportunities for a considerable number of Batswana citizens.'

MABC is represented by Moses Kadye Attorneys while NBBB has engaged Masire, Mthimkhulu Attorneys.

When revoking the licence, the board said it called MABC representatives for a hearing to show cause why they should be spared. 'The board has considered the submissions made by your company and has come to the conclusion that the reasons proffered for your company's breach of material terms and conditions of its licence are inadequate and therefore do not assist the board in its determination not to revoke,' the board said.

MABC failed to adduce or produce evidence which the NBBB could consider to inform it not to revoke the licence. In its defence, MABC said it was in the process of securing finances to fund the TV project, but no substantive documentation was provided to support the assertion.  MABC presented a plan to the board in a bid to demonstrate its intention to commence operations in November 2010.