On 3 July 2013, the SABC signed a R553 million deal with MultiChoice, signed by Hlaudi Motsoeneng as Acting COO. The Zondo Commission scrutinised whether MultiChoice used this deal to influence government policy on broadcast digital migration (BDM) — specifically to protect MultiChoice's pay-TV monopoly.
The central issue was set-top box encryption. MultiChoice's business model depended on controlling access to premium content through conditional access (encryption). If the government's digital migration policy included encryption on free-to-air set-top boxes, it could have enabled competitors to challenge MultiChoice's dominance.
Former Communications Minister Yunus Carrim testified that MultiChoice "cost South Africa dearly at Koos Bekker's behest" in delaying digital migration. Motsoeneng allegedly assured MultiChoice the state would reverse its encryption policy.
The DA referred the deal to ICASA for investigation, citing allegations of R100 million in "kickbacks." ICASA investigated allegations that MultiChoice exercised "undue influence" to change government digital migration policy. MultiChoice admitted "mistakes were made in the lobbying process" but denied corruption.
The Zondo Commission recommended that formal rules on lobbying should be established to prevent such influence campaigns. The delay in digital migration cost South Africa access to valuable broadband spectrum worth billions in economic value.