7.4 Observations The Committee made the following observations: . The absence of an Electronic Community Services (ECS) licence prohibits Broadband Infraco from delivering on its developmental objectives; . There is a high turnover rate which required a strategy to retain staff; . The entity performed poorly against key performance targets; . There is a lack of infrastructure development and network access in the rural areas, and a need for Infraco to invest more in rural communities; . There is a slow progress in finalising the investigation into tender irregularities; and . The entity has weak financial controls and much needs to be done to address matters of emphasis raised by the Auditor-General.