Broadcasting Act, 1999

11. Commercial services Part 5: Governance of Corporation

11. The commercial services provided by the Corporation must- ( a) be subject to the same policy and regulatory structures as outlined in this Act 40 for commercial broadcasting services; (b) comply with the values of the public broadcasting service in the provision of programmes and service; ( c) commission a significant amount of their programming from the independent sector; (d) subsidise the public services to the extent recommended by the Board and approved by the Minister; and ( e) be operated in an efficient manner so as to maximise the revenues provided to its shareholder. Part 5: Governance of Corporation 45 50 Composition of Board

12. Composition of Board

13. Members of Board 14. Executive committee

15. Removal from office

16. Disqualification

17. Disclosure of conftict of interests 10 15 20 25 30 35 6 No. 20042 Act No, 4, 1999 GOVERNMENT GAZETTE, 7 MAY 1999 BROADCASTING ACT. 1999 Part 6: Financial matters Financial regulations Shareholding Financial year and annual financial statements 18. 19. 20.

12. The Board consists of- ( a) twelve non-executive members; Nn 10042 GOVERNMENT GAZETTE. 7 MAY 1999 Act No. 4, 1999 BROADC:\STfN(; •\CT 1999 (h) the Group Chief Executive Officer: and the Chief Operations Officer and the Chief Financial Officer or their equivalents, who will be executive members of the Board. Members of Board 13. ( l) The twelve non-executive members of the Board must be appointed by the 5 President on the advice of the National Assembly. (2) The non-executive members of the Board must be appointed in a manner ensunng- (a) participation by the public in a nomination process; (b) ( c) transparency and openness; and that a shortlist of candidates for appointment is published, taking into account the objects and principles of this Act. 10 (3) The President must designate one of the members of the Board referred to in subsection (2) as the chairperson and another member as a deputy chairperson, both of whom must be non-executive members of the Board. 15 (4) The members of the Board must, when viewed collectively- ( a) be persons who are suited to serve on the Board by virtue of their qualifications, expertise and experience in the fields of broadcasting policy and technology, broadcasting regulation, media law, frequency planning, business practice and finance, marketing, journalism, entertainment and 20 education, social and labour issues; (b) be persons who are committed to fairness. freedom of expression, the right of the public to be informed, and openness and accountability on the part of those holding public office; represent a broad cross-section of the population of the Republic; ( c) ( d) be persons who are committed to the objects and principles as enunciated in 25 the Charter of the Corporation. (5) The members of the Board must hold office for such period as the President may determine which period must not exceed five years. (6) The deputy chairperson referred to in subsection (3) must, when the chairperson 30 is absent or unable to perform his or her duties, act in his or her stead and when so acting, exercise or perform any function of the chairperson. (7) Every appointment of a member of the Board must be published in the Gazette. (8) A member of the Board appointed to fill a casual vacancy must hold office for the unexpired portion of the period for which the vacating member was appointed. 35 (9) Members of the Board appointed immediately before the transfer date will retain their appointments with all existing benefits. (IO) Nine members of the Board, which must include the chairperson or the deputy chairperson, will constitute a quorum at any meeting of the Board. ( 11) The Board controls the affairs of the Corporation and must protect matters 40 referred to in section 6(2) of this Act. Executive committee 14. (1) The affairs of the Corporation are administered by an executive committee consisting of the Group Chief Executive Officer and six other members appointed by the Board. 45 (2) The Group Chief Executive Officer will be the accounting officer of the Corporation. (3) The executive committee is accountable to the Board. (4) The executive committee will perform such functions as determined by the Board. Removal from office 50

15. The appointing body may remove a member from the office on account of misconduct or inability to perform his or her duties efficiently after due inquiry and upon recommendation by the Board. No. 20042 GOVERNME:-JT GAZETIE. 7 MAY 1999 Act No. 4, 1999 RROADCi\S1TNll ACT. 1999 Disqualification ( a) (b) 16. (I) A person will not qualify to be appointed to the Board if such person is not a citizen of and not pennanently resident in the Republic; is subject to an order of a competent court declaring such person to be mentally ill or disordered; is convicted, after the commencement of this Act, whether in the Republic or elsewhere, of any offence for which such person is sentenced to imprisonment without the option of a fine; ( c) (d) at any time prior to the date of commencement of this Act was convicted, or at any time after such commencement is convicted- (i) in the Republic, of theft, fraud, forgery and uttering a forged document, pe1jury or an offence in tenns of the Corruption Act, 1992 (Act No. 94 of 1992); (ii) elsewhere, of any offence corresponding materially with any offence referred to in subparagraph (i); (iii) whether in the Republic or elsewhere, of any other offence involving dishonesty; ( e) has been convicted of an offence under this Act. 5 10 15 Disclosure of conflict of interests 17. (1) A person may not be appointed on the Board, unless the necessary disclosure 20 has been made that such person- ( a) directly or indirectly, whether personally or through his or her spouse, partner or associate, has a direct or indirect financial interest in the telecommunica tions, broadcasting or printed media industry; ( b) or his or her spouse, partner or associate, holds an office in or is employed by 25 any company, organisation or other body, whether corporate or incorporate, which has a direct or indirect financial interest of the nature contemplated in paragraph ( e ). (2) If at any stage during the course of any proceedings before the Board it appears that any Board member has or may have an interest which may cause such conflict of 30 interest to arise on his or her part- ( a) such Board member must forthwith fully disclose the nature of his or her interest and leave the meeting so as to enable the remaining Board members to discuss the matter and determine whether such Board member is precluded from participating in such meeting by reason of a conflict of interest; and ( b) such disclosure and the decision taken by the remaining Board members regarding such determination, must be recorded in the minutes of the meeting in question. 35 (3) If any Board member fails to disclose any interest as required by subsection (2) or, subject to the provisions of that subsection, if he or she is present at the venue where a 40 meeting of the Board is held or in any manner whatsoever participates in the proceedings of the Board, the relevant proceedings of the Board will be null and void. Part 6: Financial matters Financial regulations 18. ( l) The Corporation must draw up proper financial regulations concerning the 45 manner in which the financial affairs of the Corporation must be managed. (2) Such regulations must be approved by the Minister after consultation with the Minister of Finance. (3) The Corporation must make such regulations known in a manner it deems fit. (4) The Corporation must open and maintain an account with a bank registered as 50 such in the Republic, or with any other financial institution so registered and approved by the Minister of Finance. >lo. 20042 GOVERNMENT GAZETrE. 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT, 1999 (5) The Corporation may with the approval of the Minister invest any surplus funds of the Corporation. (6) The surplus referred to in subsection (5) must at the end of a financial year, be carried over to the next financial year and form part of the budget of the Corporation for that financial year. 5 (7) Any dividends received by the State must be paid into the J\;ational Revenue Fund. Shareholding 19. ( 1) Subject to the provisions of section 32 of the Companies Act the Corporation may have less than seven persons. · (2) The Minister must, with the concurrence of the Ylinister of Finance, determine the 10 total value and number of the shares in the Corporation. (3) The Corporation is exempt from the payment of any stamp duty or fees which are payable in respect of any increase of the share capital or the number of shares in the Corporation as required by section 75(3) of the Companies Act. Financial year and annual financial statements 15 20. (1) Subject to the provisions of section 285 of the Companies Act, the financial year of the Corporation commences on l April and ends on 31 March of the following year. (2) In addition to the annual financial statements to be drawn up in terms of the Companies Act the Minister may direct the Corporation to draw up annual statements in 20 a form determined by him or her. (3) The annual financial statements must be tabled by the Minister in the National Assembly. Rights and obligations 21. (1) The Corporation may not by virtue of the powers conferred upon it by this 25 Act do anything for which a licence is required in tenns of the IBA Act or the Telecommunications Act, 1996 (Act No. 103 of 1996), unless it has obtained the licence in question and complies with the conditions thereof. (2) Notwithstanding anything to the contrary contained in the IBA Act, or any other law, the Corporation is entitled, against payment of the annual fees which the Authority 30 may from Lime to time determine, to be issued with a licence contemplated in subsection (I). (3) The Corporation must provide the Authority with all necessary and relevant information for the purpose of monitoring compliance with the Charter. Transfer of assets 35 22. ( 1) Before the transfer date the Corporation must apply in terms of sections 41 and 42 of the IBA Act for the broadcasting licences held by the old Corporation to be transferred to the Corporation. (2) Subject to the provisions of the IBA Act or any other law, all the other assets issued to the old Corporation must be transferred to the Corporation in terms of section 40 7 4 of the IBA Act. (3) The Corporation is required to pay liabilities, rights and obligations of the old Corporation, including any claim to copyright, trademarks, patents and inventions vested in the Corporation. (4) Subject to the provisions of any other law, no transfer duty, stamp duty or any 45 other duty must be payable in respect of the transfer of any asset in terms of this section. Borrowing powers

21. Rights and obligations

22. Transfer of assets 23 Borrowing powers

25. Auditing Part 7: Staffing of Corporation Staff of Corporation 26.

23. The Corporation must not borrow money without prior written approval of the Minister and the Minister of Finance. L No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTIN<i i\C'T, 1999 Accounts 24. (1) The Corporation must keep proper account of all moneys received or expended by it and of all its assets, liabilities and financial transactions. (2) The Corporation must as soon as practicable after the end of each financial year, prepare statements of accounts and a balance sheet showing in appropriate detail the revenues and expenditure of the Corporation during that financial year, and its assets and liabilities as at the end of each financial year. (3) The Corporation must in its accounts referred to in subsection (2) reflect separately the accounts of the public and commercial services. Auditing 25. ( l) In addition to the annual financial statements to be prepared in terms of the Companies Act, the Corporation must cause its books and accounts to be audited annually by a person registered as an accountant and auditor under the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991), and appointed as auditor of the Corporation. (2) The Board must produce and lay before the auditor all books and accounts of the Corporation with all vouchers in support thereof, and all books, papers and writings relating thereto which are in its possession or control. 5 IO 15 (3) For the purposes of the audit the auditor may hear and receive evidence upon oath, and may by written notice under his hand require any person to appear before him 20 in person at a time and place stated in such notice, to give information or produce any books or document necessary for the audit. ( 4) Any person appearing in terms of such a notice must be paid such witness fees and allowances as he or she would have been entitled to if such person appeared in a magistrate's court as a witness. 25 (5) The auditor must- ( a) disallow any payment made without proper authority according to law, and report the disallowance to the Board; (b) charge against the person who made or authorised the payment in question, so much of the payment as is not condoned by the Board; (c) charge against the person responsible therefor- 30 (i) as much of the amount of any deficiency or loss arising from negligence or misconduct of that person as is not condoned by the Board; (ii) as much of any amount which ought to have been but was not brought into account by that person as is not condoned by the Board, provided 35 that no amount must be condoned where such deficiency or loss is the result of theft or fraud by that person, and certify in every case that the amount so charged is correct. (6) Any amount so charged and certified by the auditor must be paid by the person against whom it has been charged to the Corporation within fourteen days after it was so 40 certified, and, if not so paid, may be recovered from that person as a debt by the Corporation. (7) It must be the duty of the auditor, in addition to his or her ordinary duties as an auditor, to certify not less than once in every year~ (a) whether or not, in his or her opinion- the accounts of the Corporation are in order; (i) (ii) such accounts present a true and correct view of the financial position of the Corporation and of its transactions; (iii) due provision has been made for the redemption and repayment of loans raised by the Corporation; the value of the assets of the Corporation has been correctly stated; and (b) whether or not all his or her requirements and recommendations as auditor (iv) have been complied with and carried out. (8) The expenses of or incidental to any audit must be borne by the Corporation. 45 50 32 No. 20042 GOVERNME>IT GAZETrE. 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT 1999 Part 7: Staffing of Corporation Staff of Corporation 26. ( l) The Corporation may engage such officers and other employees as it may deem necessary for the attainment of its objects, and may determine their duties and salaries, wages, allowances or other remuneration and their other conditions of service in general. (2) The Corporation may- ( a) establish a housing fund or in any other manner provide for housing to its officers and other employees on such terms and conditions as it may determine; (b) establish or support associations or institutions for the promotion of the interests of its officers and other employees of their dependants; 5 10 ( c) establish or support aid funds for the rendering of assistance to its officers and other employees or their dependants under such circumstances as it may approve; 15 (d) establish a bursary fund to finance or assist in financing in the interest of the Corporation the training or further training of existing or prospective officers and other employees of the Corporation; and ( e) provide for its officers, other employees and pensioners or their dependants, by means of insurance with an insurance company or by means of a pension 20 or provident fund or in any other manner, pecuniary benefits upon retirement or termination of service or at any other time. (3) As from the transfer date every employee of the old Corporation must, without interrupting his or her service, become an employee in a similar post in the Corporation, subject to conditions of employment which must not be less favourable than those 25 applicable to him or her on the day immediately preceding the transfer date. ( 4) For the purposes of the Income Tax Act, 1962 (Act No. 58 of 1962), employees transferred to the Corporation in terms of subsection (3) must be deemed not to have changed employers and the position of such employees in respect of the phasing in of any tax levied on benefits or privileges derived by reason of employment or the holding 30 of any office as contemplated in Schedule 7 to the Income Tax Act, 1962, remains unchanged. (5) Employees transferred from the old Corporation to the Corporation in terms of subsection (3), must retain all vacation and sick leave which on the day immediately preceding the transfer date stood to their credit, including all monetary benefits attached 35 thereto. (6) Any inquiry or other action instituted or contemplated in respect of misconduct allegedly committed by such employee prior to his or her transfer to the Corporation will be disposed of or instituted by the Corporation, and the Corporation must take steps against the employee concerned if he or she is found guilty of misconduct, in terms of 40 the laws applicable to him or her before the transfer date. (7) Any agreements reached between employees and the management of the old Corporation relating to the recognition agreements and downscaling of employees, increment or any human resource policy are applicable to the Corporation, and the Corporation must take all necessary steps to conclude the process. 45 Television licenses 27. (1) The Corporation may issue a television licence conferring to the holder the right to use a television set or any number of television sets specified in the licence. (2) The licence is renewable annually. (3) The holder of any television set which was used without authorisation before the 50 date of commencement of this Act, must within 12 months after the date and subject to the rules of the Corporation relating to the authorisation, apply for such licence. ( 4) The Corporation must maintain a register of all the licences. (5) For the purposes of this Act, "holder" means- ( a) any owner of a television set; (b) any business or institution with reference to a category to which such business 55 or institution belongs; ( c) any holder of any permit registered for a place, vehicle, vessel or aircraft so specified, where a business or the affairs of that institution are carried on, or 34 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT, 1999 which has already been tion. recorded on the register of the Corpora (6) The Authority may after consultation with the Corporation make regulations in regard to any matter pertaining to television licence fees which may be issued. (7) The Corporation may delegate the collection of the payment of television licence 5 fees to other persons. (8) Failure to be in possession of a valid television licence is a civil offence. Annual report 28. ( 1) The Board must furnish to the Minister, on or before 30 September in each year, a report on the work of the Corporation of the previous financial year, together with 10 a balance sheet and a complete statement of revenue and expenditure for that financial year audited by the auditor referred to in section 25, and the report of that auditor, and must give particulars as to- ( a) (b) ( c) ( d) ( e) (f) the book value of all classes of property owned by the Corporation; the amount of securities for loans still outstanding, and the interest thereon, 15 whether paid or unpaid; the position of every fund established in terms of this Act; the expenses of management and administration and all other expenses of the Corporation; the erection and construction, repair, improvement or alteration of any plant, 20 equipment or building, and the cost thereof; the price or rent of any land or any other immovable property acquired or hired; (g) any other matters which the Minister may require the Board to deal with. (2) The Minister must table every report furnished in terms of subsection (1) in 25 Parliament, within seven days after receiving it if Parliament is in session, or, if Parliament is not in session, within seven days after the commencement of its next ensuing session. CHAPTER V COMMERCIAL BROADCASTING SERVICES 30 Part 1: Licence requirements and objectives Requirement to hold a licence

27. Television licences

28. Annual report 5 IO CHAPTER V COMMERCIAi ... BROADCASTING SERVICES 15 Part 1: Licence requirements and objectives

29. Requirement to hold a licence

30. Objectives Part 2: Subscription broadcasting service 31. Subscription television service 20 CHAPTER VI COMMUNITY BROADCASTING SERVICES

29. Any person intending to offer a commercial broadcasting service must hold a separate licence for each broadcasting service they provide. Objectives 30. (1) Commercial broadcasting services when viewed collectively- ( a) must as a whole provide a diverse range of programming addressing a wide section of the South African public; (b) must provide, as a whole, programming in all South African official languages; 35 40 ( c) may provide programming in languages other than South African official languages, where the Authority is convinced that such services can be commercially viable; ( d) must within a reasonable period of time be extended to all South Africans and provide comprehensive coverage of the areas which they are licensed to serve. 45 (2) The programming provided by free-to-air broadcasting services must as a whole- ( a) reflect the culture, character, needs and aspirations of the people in the regions that they are licensed to serve subject to licence conditions; (b) provide an appropriate significant amount of South African programming 50 ( c) according to the regulations of the Authority; include news and information programmes on a regular basis, including discussion on matters of national and regional, and, where appropriate local, significance; and 'fo. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING i\CT. 1999 ( d) meet the highest standards of journalistic professionalism. (3) The programming provided by commercial subscription broadcasting services must be subject to licence conditions determined by the Authority. (4) The programming provided by free-to-air television broadcasting services must as a whole include levels of South African drama, documentaries and children's programmes that reflect South African themes, literature and historical events, as prescribed by regulation. (5) The Authority may make regulations on the amount of South African programming and other matters which reflect these circumstances, bearing in mind the objects of this Act. (6) Subscription broadcasting services may draw their revenues from subscriptions, advertising and sponsorships. In no case may advertising or sponsorships, or a combination thereof, be the largest source of revenue. 5 IO (7) Subscription broadcasting services may not acquire exclusive rights for the broadcast of national sporting events, as identified in the public interest from time to 15 time by the Authority in consultation with the Minister and the Minister of Sport and in accordance with the regulations determined by the Authority through a public process. Part 2: Subscription broadcasting service Subscription television service 31. ( 1) As soon as possible after the promulgation of this Act, the Authority must 20 conduct an inquiry in terms of section 28 A of the IBA Act, into the economic feasibility of the provision of additional subscription television services and make known its finding by notice in the Gazette. (2) The Authority must conduct a licensing process immediately if it finds that the provision of additional subscription television services is feasible. 25 CHAPTER VI COMMUNITY BROADCASTING SERVICES Community broadcasting services 32. (1) Despite the provisions of this Act or any other law, a community broadcasting service licence may be granted by the Authority in the following 30 categories: (a) Free-to-air radio broadcasting service; ( b) free-to-air television service. (2) The licence of a community broadcasting service must be held by a licensee. (3) The licensee referred to in subsection (2) must be managed and controlled by a 35 board which must be democratically elected, from members of the community in the licensed geographic area. (4) The programming provided by a community broadcasting service must reflect the needs of the people in the community which must include amongst others cultural, religious, language and demographic needs and must - 40 (a) provide a distinct broadcasting service dealing specifically with community issues which are not normally dealt with by the broadcasting service covering the same area: (b) be informational, educational and entertaining; (c) focus on the provision of programmes that highlight grassroots community 45 issues, including, but not limited to, developmental issues, health care, basic information and general education, environmental affairs, local and interna tional, and the reflection of local culture; and (d) promote the development of a sense of common purpose with democracy and improve quality of life. (5) All surplus funds derived from the running of a community broadcasting station must be invested for the benefit of the particular community and monitored by the Authority, which has the power to audit the financial records of the services. (6) The Authority must conduct a public inquiry to determine priorities within the community radio sector. 50 55 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING .\CT. I 999 ( 7) The Authority must conduct an investigation into the viability and impact of community television, including- ( a) definition of community television; (b) access to frequencies; ( c) sustainability; (d) ownership and control; and ( e) legal framework. (8) As soon as possible after conducting the investigation referred to in subsection (10) the Authority must submit a report to the Minister and Parliament. CHAPTER VII SIGNAL DISTRIBUTION AND MULTI-CHANNEL DISTRIBUTIONS Part 1: Signal distribution and objectives Signal distribution 5 10 33. (I) The Authority must conduct an inquiry to determine the licence conditions, obligations, and tariff structure for signal distribution including the regulatory regime 15 for multi-channel distribution services and convergence. (2) Subject to subsection (I), the Authority must issue recommendations as to whether sections 49 and 50 of the IBA Act are applicable to broadcasting services carrying more than one channel and the extent and the terms upon which such sections must apply. (3) Sections 49 and 50 of the IBA Act must not apply to such broadcasting services 20 unless the Authority has issued such a recommendation, and that recommendation has been adopted by the National Assembly. Objectives 34. (I) All signal distribution services and broadcasting services, whether through terrestrial frequencies, satellite or telecommunication facilities within the borders of the 25 Republic or from the Republic to other countries will be required to hold a licence issued by the Authority. (2) Subject to licence conditions determined by the Authority the signal distribution sector must- ( a) prioritise the provision of broadcasting channels licensed in South Africa; ( b) provide uni versa! access for all South Africans to broadcast services; ( c) provide a diversity of type of broadcast services and content; (d) deliver public services, including educational, commercial and community 30 services; roll-out relevant infrastructure for regional services; (e) (f) be open and interoperable, harmonised with the Southern African region, and 35 be able to meet international distribution standards. (3) The Authority must in a licensing process promote the participation by South Africans in the broadcasting signal distribution sector, provide employment and training for South Africans and ensure the payment of licence fees. 40 Part 2: Multi-channel distributors Multi-channel distributors 35. (1) Multi-channel distributors must hold a separate class of licence issued by the Authority. (2) Multi-channel distributors may carry other signals, domestic or foreign, upon 45 approval by the Authority. Objectives 36. (I) The objectives of the multi-channel delivery system are to- ( a) give priority to the carriage of South African programming services and, in particular, to the carriage of South African services; 50 40 No. 20042 Act No. 4, 1999 COVERN.\IENT (;AZETTE, 7 MAY 1999 BROADCr\\ l !\'(; \CT, 19'JlJ (b} provide efficient delivery of programming using the most effective technolo gies available at reasonable cost: ( c) carry original programming. including local programming, where the Authority considers it appropdate. (2) The multi-channel delivery system must carry out its objectives on such terms and conditions as are determined by the Authority to achieve the objectives of this Act. 5 CHAPTER VIII FREQUENCY SPECTRUM DIRECTORATE Frequency Spectrum Directorate 37. (1) There is established within the Department a Frequency Spectrum 10 Directorate. (2) The Frequency Spectrum Directorate and its support staff must operate as a directorate of the Department and must report to the Minister through the Director General. (3) The Frequency Spectrum Directorate must be impartial in the performance of its 15 functions. (4) The Frequency Spectrum Directorate is vested with policy development of the radio frequency spectmm and must undertake technological and economic research of the radio frequency spectrum to ensure the efficient use of the spectrum. (5) In accordance with subsection (2) the Frequency Spectrum Directorate is vested 20 with the responsibility for the overall research of the use of the radio frequency spectrum to meet the needs of the users thereof. (6) The Frequency Spectrum Directorate in the performance of its functions must co-operate with the relevant bodies where applicable. CHAPTER IX 25 ADVISORY BODY TO MINISTER South African Broadcast Production Advisory Body 38. (I) The Minister must establish a South African Broadcast Production Advisory Body to advise him or her on how the development, production and display of local television and radio content can be supported. 30 (2) The terms and conditions of allowances, composition and meetings applicable to the Advisory Body by virtue of its appointment in terms of subsection (1) must be as determined by the Minister in concurrence with the Minister of Finance. (3) The Advisory Body must advise the Minister on how to encourage, facilitate and offer guidance and advice in respect of any scheme and to promote- (a) (b) the production of broadcast materials that meet the cultural needs of South Africans; the screening and airplay of South African content in television and radio, respectively; (c) awareness of local content in South African and foreign markets; ( d) distribution and exhibition of local content in foreign markets; the correction of imbalances in the local content production industry; ( e) (f) human resource development to provide skills and training of local content 35 40 providers; (g) co-productions and the concluding of international agreements. 45 (4) The Advisory Body must, after consultation with the National Film and Video Foundation and the broadcasting industry, make recommendations for the Minister to determine after consultation with the Minister of Arts, Culture, Science and Technology, the Minister of Trade and Industry and the Minister of Finance- ( a) policy and strategies to give effect to the production and display of local 50 content; .. 42 No. 20042 Act No. 4, 1999 GOVERNMENT GAZETTE, 7 MAY 1999 BROADCASTING ACT. 1999 (b) financing strategies to support the production and display of local content; (c) supply-side measures and initiatives to support the production of local content; (d) policies to enhance lhe production of local content for the multi-channel and digital broadcasting environment. 5 CHAPTERX SKILLS DEVELOPMENT This Chapter relates to the use of broadcasting as a resource in support of both the fonnal and informal education. The need for the broadcasting system as a whole to offer programming which is informative and increase the public understanding of 10 development is emphasised. Human resources development

32. Community broadcasting services CHAPTER VII SIGNAL DISTRIBUTION AND MULTI-CHANNEL DISTRIBUTION 25 Part 1: Signal distribution and objectives Signal distribution 33.

34. Objectives Part 2: Multi-channel distributors

35. Multi-channel distributors

36. Objectives CHAPTER VIII FREQUENCY SPECTRUM DIRECTORATE 37. Frequency Spectrum Directorate CHAPTER IX ADVISORY BODY TO MINISTER 38. South African Broadcast Production Advisory Body 30 35 8 No. 20042 Act No. 4, 1999 GOVERNMENT GAZETTE, 7 MAY 1999 BROADCASTING ACT. 1999 CHAPTER X SKILLS DEVEl,OPMENT

39. Human resources development CHAPTER XI GENERAL

40. Regulations 4 I. Repeal and amendment of laws

42. Application of this Act 43. Short title and commencement CHAPTER I FUNDAMENTAL PRINCIPLES AND INTERPRETATION 5 10 This Chapter sets out the fundamental principles and objects of this Act. Freedom of expression and the journalistic, creative and prograpiming independence of the broadcasters and independence of regulation are identified as guaranteed by the Constitution. These principles recognise that the South African broadcasting system 15 comprises public, commercial and community elements which make use of the radio frequencies that are public property and provides, through its programming, a public service necessary for the maintenance of South African identity, universal access, equality, unity and diversity. This Chapter also contains definitions explaining the meaning of certain words for 20 the purpose of the Act and provisions regarding the interpretation of the Act. Definitions and interpretation 1. (I) In this Act, unless the context otherwise indicates, radio, sound broadcasting service and television set have the meaning assigned thereto in the IBA Act, and- (i) "Advisory Body" means the South African Broadcast Production Advisory 25 Body established in terms of section 38 of this Act; (ii) "appointing body" means the body charged with the appointment of members of the Board in terms of section 13 of this Act; (iii) "Authority" means the Independent Broadcasting Authority established by section 3 of the IBA Act; (iv) "Board'' means Board of South African Broadcasting Corporation Limited; (v) "broadcaster" means any legal or natural person who composes or packages or distributes television or radio programme services for reception by the public or sections of the public or subscribers to such a service irrespective of technology used; 30 35 (vi) "broadcasting" means any form of unidirectional telecommunications intended for the public, sections of the public or subscribers to any broadcasting service having appropriate receiving facilities, whether carried by means of radio or any other means of telecommunication or any combination of the aforementioned, and "broadcast" is construed accord- 40 ingly; (vii) "broadcasting licence" means a licence granted and issued by the Authority in terms of this Act to a person for the purpose of providing a defined category of broadcasting service, or deemed by this Act to have been so granted and issued; 45 (viii) "broadcasting licensee" means the holder of a broadcasting licence; (ix) "broadcasting service" means any service which consists of the broadcasting of television or sound broadcasting material to the public, sections of the public or to subscribers to such a service but does not include- ( a) a service (including text service) that provides no more than data, or no 50 more than text (with or without associated still images); 10 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 HROAIX 'ASTIN CJ ACT, 1999 (b) a service that makes programmes available on demand on a point to-point basis, including a dial-up service; and ( c) a service or a class of service that the Minister determines, by notice in the Gazette, not to fall within this definition; (x) "broadcasting services frequency bands" means that part of the electromag- netic radio frequency spectrum which is allocated for the use of broadcasting services by the International Telecommunications Union (ITU), in so far as such allocation has been agreed to or adopted by the Republic; (xi) "broadcasting signal distribution" means the process whereby the output 5 signal of a broadcasting service is taken from the point of origin, being the 10 point where such signal is made available in its final content format, from where it is conveyed to any broadcast target area by means of a telecommu nication process and includes multi-channel distribution; (xii) "broadcasting signal distribution licence" means a licence granted and issued by the Authority in terms of this Act to a person for the purpose of providing 15 signal distribution for broadcasting purposes, or deemed by this Act to have been so granted and issued; (xiii) "broadcasting signal distribution licensee" means the holder of a broadcast ing signal distribution licence; (xiv) "channel" means a single defined television programming service of a 20 licensee other than a video on demand programming service; (xv) "commercial broadcasting service" means a broadcasting service operating for profit or as part of a profit entity but excludes any broadcasting service provided by a public broadcasting licensee; (xvi) "common carrier" means a service for broadcasting signal distribution as 25 provided by Sentech Limited, established in terms of the Sentech Act, 1996; (xvii) "Companies Act" means the Companies Act, 1973 (Act No. 61 of 1973); (xviii) "community" includes a geographically founded community or any group of persons or sector of the public having a specific, ascertainable common interest; 30 (xix) "community broadcasting service" means a broadcasting service which- ( a) is fully controlled by a non-profit entity and carried on for non-profitable purposes; (b) serves a particular community; (c) encourages members of the community served by it or persons 35 associated with or promoting the interests of such community to participate in the selection and provision of programmes to be broadcast in the course of such broadcasting service; and (d) may be funded by donations, grants, sponsorships or advertising or membership fees, or by any combination of the aforementioned; 40 (xx) "Corporation" means the South African Broadcasting Corporation Limited established in terms of section 7 of this Act; (xxi) "Department" means the Department of Communications; (xxii) "direct to home broadcasting" means broadcast via satellite directly to individual users and includes multi-channel satellite distribution; 45 (xxiii) "encryption" means a method for changing a broadcasting signal in a systematic way so that the signal would be unintelligible without a suitable receiving equipment; (xxiv) "free-to-air service" means a service which is broadcast without encryption and capable of being received on universal receivers without payment by the 50 end user to the broadcaster and without the use of receiving equipment; (xxv) "IBA Act" means the Independent Broadcasting Authority Act, 1993 (Act No. 153 of 1993); (xxvi) "incorporation date" means the date on which the Corporation is incorporated into a public company and issued with a certificate to commence business; 55 (xxvii) "licence area" means the geographical target area of a broadcasting service as specified in the relevant broadcasting licence; (xxviii) "licensee" means the holder of any licence granted and issued under this Act or deemed by this Act to have been so granted or so issued; (xxix) "local content" has a meaning similar to the meaning set out in section 53 of 60 the IBA Act; 12 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT. 1999 (xxx) "local delivery service" means a broadcast service using multi-channel terrestrial distribution systems such as cable. micro-wave multi-point distribution systems; (xxxi) "low power sound broadcasting service" means a community, private or public sound broadcasting service which radiates power not exceeding one watt; (xxxii) "member" means executive and non-executive members of the Board 5 referred to in sections 12 and 13 of this Act; (xxxiii) "Minister" means the Minister charged with the administration of this Act; (xxxiv) "multi-channel distribution service" means a service which transmits more 10 than one channel at the same time by means of radio waves or telecommuni cations; (xxxv) "National Revenue Fund" means the Fund established by section 213 of the Constitution; (xxxvi) "old Corporation" means the South African Broadcasting Corporation 15 established in terms of the Broadcasting Act, 1976 (Act No. 73of1976); (xxxvii) "prescribed" means prescribed by regulation; (xxxviii) "President" means the President of the Republic of South Africa; (xxxix) "public broadcasting service" means- ( a) any broadcasting service provided by the South African Broadcasting 20 Corporation; (b) a broadcasting service provided by any other statutory body; or ( c) a broadcasting service provided by a person who receives his or her revenue, either wholly or partly, from licence fees levied in respect of the licensing of persons in relation to sound radio sets and in relation to 25 television sets, or from the State, and must include a commercially operated broadcasting service provided by a person referred to in paragraph (a), (b) or (c) of this definition; (xi) "radio" means an electromagnetic wave propagated in space without artificial guide and having by convention a frequency of lower than 3 000 GHZ; (xii) "satellite broadcasting service" means a service which is broadcast by 30 transmitters situated on a satellite; (xiii) "sound broadcasting service" means a broadcasting service destined to be received by a sound radio set; (xliii) "sound radio set" means any apparatus designed or adapted to be capable of 35 receiving by radio the transmissions broadcast by a broadcasting service, and reproducing them in the form of sounds, but not also in the form of images or other visible signs or signals; (xliv) "subscription broadcasting service" means a broadcasting service provided to an end user upon the payment of a fee; (xiv) "telecommunications" means any system or method of conveying signs, signals, sounds, communications or other information by means of electricity, magnetism, electromagnetic waves or any agency of a like nature, whether with or without the aid of tangible conductors, from one point to another, and the derivative noun "telecommunication" must be construed accordingly; (xlvi) "television broadcasting service" means a broadcasting service consisting in the sending of visual images or other visible signals whether with or without accompanying sounds, where the visual images are such that sequences of them are seen as moving pictures; 40 45 (xlvii) "terrestrial broadcasting service" means a service that is broadcast from a 50 transmitter situated upon the earth's surface; (xlviii) "transfer date" means a date announced by the Minister by proclamation in the Gazette. (2) Any interpretation of the provisions of this Act must be construed and applied in a manner which is consistent with freedom of expression and the journalistic, creative 55 and programming independence of the broadcasters guaranteed by the Constitution. (3) The provisions of the Companies Act are applicable to the Corporation except where otherwise stated in this Act 14 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4. 1999 BROADCASTING ACT. 1999 Object of Act

42. In the event of conflict between the provisions of this Act and any other law 35 relating to broadcasting, the provisions of this Act must prevail. Short title and commencement 43. (1) This Act is called the Broadcasting Act, 1999, and comes into operation on a date determined by the President by proclamation in the Gazette. (2) Different dates may be fixed for the coming into operation of different sections of 40 this Act by proclamation in the Gazette. 44 No. 20042 GOVERNMENT GAZETTE. 7 MAY 1999 Act No. 4. 1999 BROADC..\STIN(i .1JT. !999 SCHEDUU1~ LAWS AMENDED OR REPEALED No. and year of law Short title Extent of amendment or repeal Act No. 73 of 1976 Broadcasting Act, 1976 The repeal of the whole. Act No. 153 of 1993 Independent Broadcasting Act. 1993 In this Act, unless the context other- wise indicates, broadcasting, broad- casting signal distribution, broadcast- ing service, encryption, private broadcasting service, public broadcast- ing service, community, broadcasting services frequency bands, have the I m~o;og "';good '""""' ;, "''"" I of the Broadcasting Act of 1998.

1. Amendment of section I by the insertion of the following definitions: (a) "'low eower sound hroadcast· ing service' means a community, Erivate or EUblic sound broadcast- ing service which radiates Eower not exceeding one watt;"; ! (b) " 'National Revenue Fund' means the Fund established b;t section 213 of the Constitution;"; (c) " 'financial interest' means inter- est that mai'. not have voting rights attached to it but which gives the person or entit;t a financial interest directl:t via shares or indirectl:t via an agreement giving it the i:;ower to have control of the licensee or effective say over the affairs of the licensee." - - -

2. Amendment of section I by the substitution for the definition of "elec- tion period" of the following defini- tion: I I I " 'election eeriod' means the ~- riod commencing with the date on which the election da)". is Ero- claimed and ending on the day im- mediate!):'. following u12on the da):'. on which candidates of an:i:: of the 291itical Earties are declared elected.". ---

3. Amendment of section 2 by the substitution for "private" to "commer- cial", wherever it appears.

4. Amendment of section IO by the substitution for subsection (4) of the following subsection: (4) The quorum for any meeting of the Council shall be four council- !ors or a majority of the total num- ber of councillors holding office at the time, whichever is the greater.". I ! I 46 No. 20042 GOVERN'.vlENTGAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTIN<I ACT, 1999 No. and year of law I Short title i ------ Extent of amendment or repeal

5. Substitution for section 13 of the following section: "General powers and functions of ' Authority 13. (I) Without derogation from the g:eneralit:l:'. of the provisions of section 3, the Authorit:i:: shall, in addition to powers conferred u1::on it elsewhere in this Act, or bl any other Ia·N, have the power- (a) to administer the statuto!}' scheme for granting. renewing and amending of broadcasting ~ ( b) to manage broadcasting services freguency bands and other (!arts of the radio fr~uenc:i:: spectrum 1::ro~rl:i:: delegated to it by the Minister as outlined in section 29 of this Act: (c) to make reg:ulations consistent with section 2 of the Broadcast- ing Act, 1998, as set out in sec- tion 78 of this Act; (d) to desig:n and implement broad- casting conditions of licence consistent with the objectives set out in section 2 of the Broadcasting Act, 1998, for different categories of broad- castin,g: service, including, but not limited to conditions relat- ing to- (i) local content reguirements; (ii) f:!TOl.[arnme reguirements; (iii) coverage obligations; (iv) language service 12rovision; (v) ownership and control compliance; (vi) compliance with the Code of Conduct for Broadcast- inl:l Services; and (vii) em12owerment of histori- call:l:'. disadvantaged groups; (e) to specif:J:'. the freguenc:l:'. charac- teristics of broadcasting ser- vices; (f) to undertake inguiries on all matters within its jurisdiction, includinl:J the holding of eublic hearings; (fl) to submit an annual re2ort to the Minister on all matters within its jurisdiction, includ- inl:J, but not limited to-- (i) the audited re2ort set out in section 20 of this Act; 48 t\o_ 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTINCI ACT 1999 No. and year of law Short title Extent of amendment or repeal -- (ii) the issuance, renewal and amendment of licences as set out in sec lion 20(3 )( c) of this Act; (iii) comEliance with standards; (iv) SEectrum Elanning and al- location; (v) Erogress on meeting local content re9uirements; (vi) details of all inguiries undertaken within the year; (vii) statistical overview of the broadcasting environ- men!; (viii) a status guo of the oq;ianisation of the Inde- Eendent Broadcasting Authoritz, including its executives from the rank of Head of Department and above; ! i (h) to monitor the broadcastinj! industry to ensure comEliance with broadcasting laws and regulations as well as with communitz standards in 1.1ro- gramming, as set out in sec- tion 66 of this Act; ( i) to conduct research in all mat- ters affectinji1 broadcasting in order to 1.1erform its regulatori:: role: (j) each zear to eublish a 1.1ro- Eosed regulator)'.'. agenda for the ensuing three years; (k) to make recommendations to the Minister for amendments to this Act and the Broadcast- ing Act, 1998, so as to align them with the current indus- t!} and Eublic 1.10Iicy environ- ment; (I) to review and consider any technical matters relating to broadcasting referred to it b~ the Minister and to make rec- ommendations to the Minister with reseect thereto; (m) to be consulted by the Minis- ter with regard to ani:: matters to be Eut before Parliament pursuant to reguests made under EaragraEh (g); I I I 50 No. 20042 Act No. 4, 1999 GOVERNMENT GAZETTE, 7 MAY 1999 BROADCAST!Nll ACT, 1999 No. and year of law Short title Extent of amendment or repeal (n) to hold public hearings. (2) The President shall, on the ad- vice of the National Assembly, a1212oint the chairperson of the Authority.".

6. Insertion of the following section after section 13: "General role and powers of Min- ister 13A. (1) No acguisition or dis- 12osal of State broadcasting assets is valid unless it is aeproved by the Minister. (2) The Minister may direct the Authority- (a) to undertake any seecial investi- gation and inguiry on any mat- ter within its jurisdiction and to re12ort to the Minister thereon; (b) to determine 12riorities for the develo12ment of broadcasting services; (c) to consider any matter within its jurisdiction Elaced before it by the Minister for urgent consider- ation. - - (3) Any seecial investigation or inguiry contemElated in subsection (2)(a) shall be financed by money a1212roEriated to the Authority for that Eurpose. ( 4) The Minister shall, before a direction contemplated in subsection (2) is issued, consult the Authority. (5)( a) Subject to EaragraEhs ( c) and (d) the Minister may issue to the Authority Eolicy directions of general a12Elication on matters of broad national Eolicy consistent with the object mentioned in section 2 of the Broadcasting Act, 1998, in relation to- (i) the radio freguency SEectrum, for the J2U!:Eoses of Elanning broadcasting and other ser- vices; (iii) (ii) the uni versa! service coverage targets of the 12ublic broadcast- ing services; the ReEublic's obligations and undertakings under interna- tional treaties and conventions, including technical standards and freguency matters; the aEElication of new tech- nologies that interface with broadcasting; (iv) (v) government regulations on financial, revenue and ex12en- diture controls. 52 No. 20042 GOVER!'."MENT GAZETTE, 7\1.AY1999 Act No. 4, 1999 BROADCASTING ACT, 1999 • No. and year of Jaw Short title Extent of amendment or repeal (b) The Authorit.)'., in performing its functions in terms of this Act, must consider an.)'. E:21iC.)'. direction issued b.)'. the Minister under i::ara- grai::h (a). (c) No such direction ma.)'. be is- sued regarding the granting of a licence or regarding the amendment, susi::ension or revocation of a Ii- cence. ( d) No such direction ma.)'. be issued which interferes with the indei::endence of the Authority or which affects the 1::2wers and func- tions of the Authorit.)'.. (6) The Minister shall, before a 1::2lic.)'. direction contem12lated in subsection (5) is issued- (a) consult the Authoritz; (b) in order to obtain the view of interested 12ersons, cause the text of such direction to be 12ub- lished in the Gazette together with a notice declaring his or her intention to issue that direc- tion and inviting interested ~r- sons to lodge written re12resen- tations in relation to the direction in the manner speci- tied in such notice within 30 da.)'.S from the date of the notice; (c) refer the i::ro1::2sed direction for comment to the committees of Parliament ai::12ointed for the i::uri::ose of considering matters relating to broadcasting. (7) The 12rovisions of subsection ( 6) shall not a1212Ix in res12ect of anx amendment bx the Minister of a i::olic.)'. direction in cons~uence of comments or re12resentations re- ceived b.)'. him or her i:ursuant to consultation, i:ublication or refer- ence in terms of that subsection. (8) A 120Iicl'. direction issued un- der this section ma.)'. be amended, withdrawn or substituted b.)'. the Minister, and the 12rovisions of this section shall aeell'., with the neces- sar.)'. changes, in relation to anl'. such amendment, withdrawal or substitu- tion. (9) The Minister shall table in Parliament the annual or anx other reeorts of the Authorit.)'..". 54 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT, 1999 .. !'lo. and year of law Short title i I ' I Extent of amendment or repeal

7. Amendment of section 14 by the substitution for subsections (I) and (3) of the following subsections: "(I) The Council shall appoint a suitably qualified and experienced person as [chief administrative officer] chief executive officer of the Authority for the purpose of assisting the Council, subject to the latter's direction and control in the performance of all financial, admin- istrative and clerical functions and work arising from the application and administration of this Act (3) Subject to the provisions of subsection ( 4 ), the Authority may pay to the persons in its employ, or provide them with, such remunera- tion, allowances, bonuses, subsidies, housing benefits, pensions and other employment benefits as [the Authority may, after having ob- tained such professional advice as it may deem fit, consider as being competitive in the open employ- ment market] is consistent with the public sector.".

8. Amendment of section 15 by the substitution for subsection (I) of the following subsection: "(!)(a) The oi:erating and cai:ital costs of the Aulhorit)' shall be fi- nanced from monex aj')j')roj')riated by Parliament from time to time for that j')urpose. ( b) The Authorit)' shall utilise an)' monex contemj')lated in 12aragra2h (a) in accordance with the statement of estimated ex~nditure referred to in i:aragraj')h ( c). (c) The Authority- (i) shall in each financial xear, at a time determined b)i the Minis- ter, submit a statement of esti- mated income and ex12enditure for the followin~ financial )'ear to the Minister for his or her aErroval, ~ranted in consulta- tion with the Minister of Fi- nance; (ii) mai' in any financial )'ear sub- mit adiusted statements of esti- mated income and exj')enditure to the Minister for his or her al'li:roval, granted in consulta- tion with the Minister of Fi- nance;and (iii) ma)' retain a1212lication fees for administration j')U!:l')OSes.".

9. Repeal of section 16.

10. Amendment of section 17 by the substitution for subsection (2) of the following subsection: I I 56 No. 20042 Act No. 4, 1999 GOVERNMENT GAZETTE, 7 MAY 1999 BROADCASTING ACT, 1999 No. and year of law Short title Extent of amendment or repeal "(2) Cheques drawn on the Au- thority shall have been duly issued and signed on its behalf if issued under the joint signatures of any two members of the staff of the Au- thority [from time to time autho- rized for that purpose by special resolution of the Council] as desig- nated b~ the chai~erson from time to time.". - - -

11. Substitution for section 18 of the following section: "Investment of surplus moneys

18. All fees and Eenalties re- ceived in terms of section 67 shall be Eaid into the National Revenue Fund.".

12. Section 40 is hereby repealed.

13. Amendment of section 41- (a) by the substitution for subsection (6) of the following subsection: "(6) Within [14] 30 days of receipt of any application in terms of this section, the Au- thority shall cause to be pub- lished in the Gazette a notice containing all the material par- ticulars of the application and inviting interested persons to lodge [their] written representa- tions in relation to the applica- tion in the manner specified in such notice within [one month] 30 da~s or such shorter Eeriod as from the date of such notice as ma~ be determined b~ the Authorit~, which ma~ not be less than 10 days."; (b) by the substitution for subsection (8) of the following subsection: "(8) The applicant shall sub- mit his or her written response (if any) to any representations lodged in terms of subsection (7) to the Authority within [two months] 60 days of the date of the notice contemplated in sub- section (6), and shall at the same time furnish proof to the satisfaction of the Authority that he or she has sent by registered post or delivered a copy of such written response to the person having made such representa- tions."; 58 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT, 1999 No. and year of law Short title I Extent of amendment or repeal 'I c) by the insertion after subsection ( 8) of the following subsection, with subsection (9) becoming sub- section ( 10): "(9) Save for reeresentations made under subsection (6), the res~nse of the a(!(!licant under subsection (8) and such further information as the a(!(!licant furnishes under subsection (5) within the (!eriod seecified un- der that subsection, no al!elica- tion mal'. be amended or varied and no SU(!(!lementary or addi- tional documents mal'. be filed after the (!Ublication of the no- tice under subsection (6), exceet with the written Eermission of the Authorit)'. granted upon aE- (!lication and u~n such terms and conditions as Council mal'. determine.".

14. Insertion of the following sec- tion after section 41: "41A. (I) Notwithstanding the Erovisions of sections 41. 42, 44 and 47 the Authorit)'. ma)'. on such terms and conditions as it mal'. de- termine, issue a licence to Erovide a low eower sound broadcastin!,\ ser- vice. (2) The Authority shall Erescribe the reguirements and erocedures aEE!licable to aE(!lications for such licences.". - - -

15. Amendment of section 42- (a) by the substitution for subsection ( 1) of the following subsection: "(I) [In] Save as 2rovided in section 41 A in respect of [every application] aEE!lications for [a] broadcasting [licence] licences received by the Authority, ~ notice of which has been eub- lished under section 41(6), it shall at its discretion hold a hearing as provided for in this section."; (b) by the substitution for paragraph (c) of subsection (3) of the follow- ing paragraph: No. 20042 GOVERNME"!T GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT, 1999 No. and year of law Short title , I I Extent of amendment or repeal "(c) the Authority, after having [duly] considered the application, the representations (if any) made in accordance with the provisions of that subsection, the applicant's written response thereto (if any), any [further] other information furnished in terms of section 41 and any other evidence [ten· dered to] admitted by the Au- thority, shall within a reasonable time grant or refuse the application and shall subse- quently provide written reasons for its [ruling] decision by notice in the Gazette and give notice of the availabilit)'. of the reasons at the office of the Authoritr".

16. Amendment of section 48 by the substitution for paragraph (b) of sub- section (I) of the following paragraph: "(b) have financial interest or interest either in voting shares or eaid-ue ca2ital in a Erivate broadcasting licensee exceeding twenty Eer- cent.". --

17. Amendment of sections 48, 49, 50 and 54 by the substitution of "pri- vate" with "commercial", wherever it appears.

18. Amendment of section 50 by the substitution for subsection (2) of the following subsection: "(2)(a) No ~rson who controls a news2a2er ma)'. acguire or retain a financial control in both a radio and TV licence. (b) No ~rson who is in a ~si- tion to conlrol a ncWS(!a~r ma)'. be in a (!OSition to control a radio or television licence in an area where the news(!a~r has an average ABC circulation of 20% of the total neWS(!a~r readershiJ2 in the area, if the licence area of the radio licencee overla(!S substantiall:i:: with the said circulation area of the news12aE!er. (c) Substantial overlaE shall be inte!:)2reted to mean an overla]2 b:i:: 50% or more. (d) A 20% shareholding in a radio or television licence shall be deemed to constitute control. ( e) The shareholding and finan- cial structures of commercial broad- casting licensees will form (!art of the annual re(!Orts submitted to the authority.". 62 No. 20042 Act No. 4, 1999 GOVERNMENT GAZETTE. 7 MAY 1999 BROADCASTING ACT. 1999 No. and year of law I Short title Extent of amendment or repeal

19. Amendment of section 54- ! a) by the substitution for paragraphs (bi and (cJ of the following para- graphs: ''( b) in the case of a public and a private sound broadcast- ing licence, shall be six years; [and] (C) in the case of a community sound or television broad- casting licence which is not a temporary commu- nity broadcasting licence within the contemplation of section 47 A, shall be four years [,]; and"; ( b) by the insertion of the following paragraph: "(d) in the case of a low ~wer sound broadcastin!! Ii- cence shall be such ~riod not exceedin!! three :tears as the Authorit:t ma:t de- ~.''.

20. Amendment of section 63 by the substitution for subsections (2) and (3) of the following subsections: "(2) A complaint contemplated in subsection (I) shall be [in writing and shall be served on the licensee concerned and be] lodged with the Authority for consideration by the Broadcasting Monitoring and Com- plaints Committee. (3) For the purposes of subsection (2), a complaint may be delivered by hand [or} sent by registered post, [fax or telex] faxed, or communi- cated telephonicall:t to the Author- it;r, which shall record and tran- scribe such complaint.".

21. Amendment of section 66A by the substitution for subsections (3) and ( 4) of the following subsections: "(3) (a) No person shall use any [television set] apparatus for the reception of [anything] ~ broad- cast by a pay-television service which has been licensed in terms of section 46, unless such person has been authorized by such licensee to do so. ( b) No person shall assist any other 12erson in receiving, in conflict with 12aragra12h (a), an:t broadcast b:t a ea:t-television service. ( c) No 12erson shall have in his or her possession any eguii:iment, ob- ject or electronic data intended to be used for the reception, in conflict with para11,ra12h (a), of anx broadcast b:t a 12a:t-television service. 64 No. 20042 GOVERNMENT GAZETTE. 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT. 1999 No. and year of law Short title Extent of amendment or repeal (di For the Eu~oses of Earagra[lh ( b ), "assist" shall include but shall not be limited to manufacturing, distributing, letting, selling or SU[l- [llying any egui[Jment, object or electronic data intended by the manufacturer, distributor, lessor, seller or SU[l[llier, as the case may be, to be used or a[l[llied, either by itself or in conjunction with any other object, for the rece[ltion, in contravention of [laTa!lraph (a), of an~thing broadcast by a broadcast- ing service. (4) Anz:: ~rson who contravenes subsection (1) or (3) shall be guiltz:: of an offence and liable on convic- tion to a fine or to im[Jrisonment for a ~riod not exceeding two }:'.ears.".

22. Amendment of section 67 by the substitution for subsection (2)(h)(ii) and (iii) of the following subpara- graphs: "(ii) in the case of a contravention of sections 32, 39 and 74, to a fine not exceeding RI 000 000 per day; (iii) in the case of a contravention of section 71 (1 ), and in the case of an offence contemplated in para- graph ( d) of this subsection, to a fine not exceeding RIOO 000.".

23. Amendment of section 69 by the addition of the following paragraphs in subsection (I): "( c) delegate to a eommittee of the Council, established 12ursuant to section 23 of this Act the [lOWer to hold hearings in re- S[leCt of inguiries under sec- tion 28 and in res~ct of 3[l[lli- cations to grant, renew, amend or transfer an~ licence; (d) delegate to an~ committee act- ing in terms of subsection ( c) shall as soon as reasonably [lOS- sible after it has held an ingui!)'. or hearing, Erovide the Council with transcri12ts of the Eroceed- ings together with a written re- ('.Ort On the [JrOceedings, oral evidence and re2resentations. The Council shall after due con- sideration, decide the matter and 2rovide written reasons as Erescribed in section 42(3)(c); 66 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT, 1999 No. and year of law Short title Extent of amendment or repeal ( e) the common carrier for broad- casting signal distribution shall rrovide signal distribution fa- cilities to be used for emergencl'. sound broadcasting services to the extent that thel'. are deemed necessarl'. in the EUblic interest by the Minister. The common carrier shall comEll'. with the conditions imEosed b;):'. the Authority.".

24. Section 80 is hereby repealed. L

2. The object of this Act is to establish and develop a broadcasting policy in the Republic in the public interest and for that purpose to- ( a) contribute to democracy, development of society, gender equality, nation building, provision of education and strengthening the spiritual and moral fibre of society; ( b) safeguard, enrich and strengthen the cultural, political, social and economic fabric of South Africa; ( c) encourage ownership and control of broadcasting services through participa- tion by persons from historically disadvantaged groups; ( d) ensure plurality of news, views and information and provide a wide range of entertainment and education programmes; 5 10 ( e) cater for a broad range of services and specifically for the programming needs (f) in respect of children, women, the youth and the disabled; encourage the development of human resources and training, and capacity 15 building within the broadcasting sector especially amongst historically disadvantaged groups; ( g) encourage in vestment in the broadcasting sector; (h) ensure fair competition in the broadcasting sector; (i) ensure efficient use of the broadcasting frequency spectrum; (j) provide a clear allocation of roles and assignment of tasks between policy formulation, regulation and service provision as well as articulation of long-term and intermediate-term goals; (k) provide for a three tier system of public, commercial and community broadcasting services; 20 25 ( l) establish a strong and committed public broadcasting service which will service the needs of all South African society; (m) ensure that the commercial and community licences, viewed collectively, are controlled by persons or groups of persons from a diverse range of communities in South Africa; 30 (n) ensure that broadcasting services are effectively controlled by South Africans; integrate multi-channel distribution systems into the broadcasting framework; ( o) (p) provide access to signal distribution services for content providers; (q) provide access to signal distribution services for broadcast content receivers; ( r) encourage the development of local programming content. 35 CHAPTER II SOUTH AFRICAN BROADCASTING SYSTEM This Chapter is of central significance to the Act, as it lays the basis that the South African broadcasting system is owned and controlled by South Africans. The National Government, acting through the Minister, is responsible for the achievement of this 40 purpose and the constitutional mandate of broadcasting policy development. Being empowered to act on behalf of the nation, the Minister has the ultimate responsibility to fulfil certain obligations relating to use, protection and access to broadcasting resources. South African broadcasting system 3. (1) The South African broadcasting system- ( a) serves to safeguard, enrich and strengthen the cultural, political, social and economic fabric of South Africa; (b) operates in the public interest and strengthens the spiritual and moral fibre of society; 45 50 ( c) ensures that the broadcasting system is controlled by persons or groups of persons from a diverse range of communities in South Africa and within each element promotes ownership, control and management of broadcasting services by persons from historically disadvantaged groups; ( d) encourages fair competition in the provision of programmes and services. 55 16 No. 20042 GOVERl\MENT GAZETTE. 7 MAY 1999 Act No. 4, 1999 BROADC/\STl"l(i ACT. 1999 (2) Subject to subsection (I), the Minister is ultimately responsible to develop policy that is required from time to time. (3) Public and commercial broadcasting services must comply with international technical standards and the broadcasting system must be readily adaptable to scientific and technological advances. (4) The broadcasting system, as a whole, must provide educational programming, and where such programming is provided by a dedicated education service, must be extended throughout the Republic within the financial resources. (5) The programming provided by the South African broadcasting system must- 5 ( a) be varied and comprehensive, providing a balance of information, education and entertainment meeting the broadcasting needs of the entire South African population in terms of age, race, gender, interests and backgrounds; IO ( b) be varied and offer a range of South African content and analysis from a South African perspective; (c) must be drawn from local, regional. national and international sources; ( d) provide a reasonable, balanced opportunity for the public to receive a variety 15 of points of view on matters of public concern; ( e) provide a significant place for programmes produced by the independent (f) production sector; comply with the code of conduct for broadcasting services as prescribed in 20 Schedule 1 of the IBA Act; (6) A range of programming in the Republic's official languages must be extended to all South Africans as circumstances permit. (7) The human resources development strategy for the broadcasting sector must be viewed holistically in terms of qualification standards, skills development, teaching, 25 inter-relationships with the complementary sectors and the funding of the training system. CHAPTER III CLASSIFICATION OF BROADCASTING SERVICES This Chapter emphasises the need to adopt a more comprehensive approach to 30 broadcasting and broadcasting services to be in line with international practices and technological developments. Part 1: Broadcasting licences Licences 4. (I) Any person who intends to provide a broadcasting service, including 35 distribution services whether satellite or terrestrial, or any other form of distribution which offer programming to the public is required to obtain a licence in accordance with the conditions which the Authority may determine from time to time. (2) A broadcasting service existing at the commencement of this Act, upon application to the Authority for a broadcasting licence, is deemed to have the necessary permission 40 to continue its activities for a period not exceeding six months from the commencement of this Act or until such time as the Authority has decided on the licence application and, in the event of a decision to grant the application, has issued such licence. (3) This section must not be construed to mean that a broadcaster licensed or authorised to provide service to a foreign country by the appropriate authority and 45 whose signal is incidentally received in South Africa, is required to hold a licence in South Africa. (4) The Authority may attach prescribed conditions to an authorisation or licence. (5) No person may provide a broadcasting service unless such service is provided in accordance with a broadcasting licence issued to that person by the Authority. 50 (6) Each channel provided in a multi-channel environment must be authorised by the Authority upon application by the person offering a broadcasting service to the public. (7) Any channel carried by a broadcasting service at the commencement of this Act, upon application to the Authority for authorisation, is deemed to have the necessary 18 No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT 1999 permission to continue its activities unless the Authority decides anything to the contrary. Classes of licences 5. (l) Subject to the provisions of this Act, the Authority may, on such conditions as it may determine, issue a sound or television broadcasting service licence for a specified area in the following broadcasting service categories: 5 (a) A public broadcasting service; (b) a commercial broadcasting service; and ( c) a community broadcasting service. (2) Subject to the provisions of this Act, the broadcasting licences are categorised in 10 the following classes: (a) Free-to-air radio service; free-to-air television service; (b) ( c) satellite-free-to-air radio service; ( d) satellite-free-to-air television service; ( e) satellite-subscription televison service; (f) ( g) direct-to-home deli very service, including multi-channel satellite distribution; (h) ( i) cable television subscription service; (j) (k) any other class of licence as determined from time to time. terrestrial-subscription television service; low power radio service; and local delivery service; 15 20 CHAPTER IV PUBLIC BROADCASTING SERVICE AND CHARTER OF CORPORATION This Chapter provides for the incorporation of the Corporation and for the Charter. 25 The Charter is dealt with by Parliament as part of the broad national policy framework. The Authority monitors and enforces compliance with the provisions of the Charter of the Corporation. Part 1: Public broadcasting service South African Broadcasting Corporation 30 6. (1) The Corporation is governed by the Charter. (2) In terms of this Charter, the Corporation will in pursuit of its objectives and in exercise of its powers, enjoy freedom of expression and journalistic, creative and programming independence. (3) The Authority must monitor and enforce compliance with the Charter by the 35 Corporation. CHARTER OF CORPORATION Part 2: Establishment, incorporation, objectives and organisation of Corporation. Incorporation 7. (1) On the transfer date the Minister must apply for the establishment by 40 incorporation of the Corporation to a limited liability company with a share capital as contemplated in the Companies Act. (2) The Corporation is the successor of the old Corporation. (3) The application for incorporation must be accompanied by the memorandum and articles of association as contemplated in the Companies Act signed by the Minister on 45 behalf of the State. ( 4) The registration of the memorandum and articles of association is exempted from the payment of an additional fee as required by section 63(2) of the Companies Act. No. 20042 GOVERNMENT GAZETTE, 7 MAY 1999 /u·t No. 4, 1999 l:llWADCASTING ACT. 1999 (5) The Registrar of Companies is entitled to i;,sue such directives and authorise such deviations from the regulations in force in terms of the Companies Act and the documents prescribed in terms thereof as he or she may consider necessary in order to effect to this section. (6) The Board of the old Corporation must be required to promptly comply with 5 every directive issued under subsection (5). The Minister must, when in his or her opinion the old Corporation has properly discharged its functions and all directives issued under subsection (5), by notice in the Gazette, fix the date of establishment and incorporation. (8) The State, upon incorporation, holds one hundred percent of the shares of the 10 Corporation. Objectives of Corporation

8. The objectives of the Corporation are- ( a) ( b) ( c) ( d) (e) (f) (g) (h) (i) (j) (k) (l) to make its services available throughout the Republic; to provide sound and television broadcasting services, whether by analogue or 15 digital means, and to provide sound and television programmes of informa tion, education and entertainment funded by advertisements, subscription, sponsorship, licence fees or any other means of finance; to acquire from time to time a licence or licences for such period and subject to such regulations, provisions and licence conditions as may be prescribed by 20 the Authority; to provide, in its public broadcasting services, radio and television program ming that informs, educates and entertains; to be responsive to audience needs and account on how to meet those needs; to provide other services, whether or not broadcasting or programme supply 25 services, such services being ancillary services; to provide television and radio programmes and any other material to be transmitted or distributed by the common carrier for free to air reception by the public subject to section 33 of this Act; to provide to other bodies by such means and methods as may be convenient, 30 services, programmes and materials to be transmitted or distributed by such bodies and to receive from such other bodies services, programmes and mate rials to be transmitted by stations of the Corporation for reception as above; to commission, compile, prepare, edit, make, print, publish, issue, circulate and distribute, with or without charge, such books, magazines, periodicals, 35 journals, printed matter, records, cassettes, compact disks, video tapes, audio-visual and interactive material, whether analogue or digital and whether on media now known or hereafter invented, as may be conducive to any of the objects of the Corporation; to establish and maintain libraries and archives containing materials relevant 40 to the objects of the Corporation and to make available to the public such libraries and archives with or without charge; to organise, present, produce, provide or subsidise concerts, shows, variety performances, revues, musical and other productions and performances and other entertainment whether live or recorded in connection with the 45 broadcasting and programme supply services of the Corporation or for any purpose incidental thereto; to collect news and information in any part of the world and in any manner that may be thought fit and to establish and subscribe to news agencies; (m) to carry out research and development work in relation to any technology 50 relevant to the objects of the Corporation and to acquire by operation of law, registration, purchase, assignment, licence or otherwise copyright and designs, trade marks, trade names and any other intellectual, industrial and commercial property rights; to nurture South African talent and train people in production skills and carry 55 out research and development for the benefit of audiences; to develop, produce, manufacture, purchase, acquire, use, display, sell, rent or dispose of sound recordings and films and materials and apparatus for use in connection with such sound recordings and films; ( o) ( n) + No. 20042 GOVERNMENT GAZETTE. 7 MAY 1999 Act No. 4, 1999 BROADCASTING ACT. 1999 (p) to develop and extend the services of the Corporation beyond the borders of South Africa. Organisation 9. ( l) The Corporation consists of two separate operational entities, namely- ( a) a public service; and ( b) a commercial service. (2) The public and commercial services of the Corporation must be separately administered. Public service Part 3: Public service 5 10 10. (I) The public service provided by the Corporation must- ( a) make services available to South Africans in all the official languages; ( b) reflect both the unity and diverse cultural and multilingual nature of South Africa and all of its cultures and regions to audiences; ( c) strive to be of high quality in all of the languages served; ( d) provide significant news and public affairs programming which meets the highest standards of journalism, as well as fair and unbiased coverage, impartiality, balance and independence from government, commercial and other interests; include significant amounts of educational programming, both curriculum- 20 based and informal educative topics from a wide range of social, political and economic issues, including, but not limited to, human rights, health, early childhood development, agriculture, culture, justice and commerce and contributing to a shared South African consciousness and identity; enrich the cultural heritage of South Africa by providing support for 25 traditional and contemporary artistic expression; 15 ( e) (f) ( g) strive to offer a broad range of services targeting, particularly, children, ( h) (i) women, the youth and the disabled; include programmes made by the Corporation as well as those commissioned from the independent production sector; and include national sports programming as well as developmental and minority sports. 30 (2) The public service provided by the Corporation may draw revenues from advertising and sponsorships, grants and donations, as well as licence fees levied in respect of the licensing of persons in relation to television sets, and may receive grants 35 from the State. Part 4: Commercial services Commercial services

39. All licensees licensed in terms of the IBA Act and the provisions of this Act must comply with the provisions of the national policy regarding skills development and specific human resource development conditions determined by the Authority . 15 CHAPTER XI GENERAL Regulations 40. (1) The Minister may, by notice in the Gazette, make regulations regarding- ( a) any notice required or permitted to be issued by the Minister in terms of this 20 Act; and (b) any administrative or procedural matter which it is necessary to prescribe in order to give effect to the provisions of this Act. (2) No regulation may be made under subsection (1) on any matter falling within the functions of the Authority in terms of this Act, the IBA Act or any other law. 25 Repeal and amendment of laws 41. (l) The laws specified in Schedule 1 are repealed or amended to the extent indicated in the third column thereof. (2) Any regulation, license, appointment, designation, determination or other thing which was made, issued or done under a law repealed by this section and which could 30 be made, issued or done, under any provision of this Act, is deemed to have been made, issued or done under the last-mentioned provision and remains in force until repealed or amended. Application of this Act