Lack of urgency in bailing out SABC

Communications minister unsupportive in giving broadcaster R3bn to stay afloat

THE Standing Committee on Public Accounts has warned of a lack of support from Minister of Communications Nomvula Mokonyane for the public broadcaster to get a bailout of R3 billion.

Scopa said it appeared there was no sense of urgency from the Ministry and National Treasury to deal with the financial crisis at the SABC.

The financial meltdown at the SABC has reached crisis proportions that if no bailout is received in the next few months the institution will collapse.

The SABC board told Scopa yesterday it had been trying to get a bailout from the government for more than a year but nothing has happened.

Scopa chairperson Themba Godi said he had noted that it appeared Mokonyane has not been able to help the SABC.

SABC board chairperson Bongumusa Makhathini said they were trying to get an audience with President Cyril Ramaphosa, Finance Minister Tito Mboweni and Mokonyane at the same table to finalise the matter.

Godi said he was disappointed nothing seemed to have moved at the SABC over the request for the bailout.

“We have demonstrated our support for the SABC. We took a great deal of time to engage the SABC to identify and isolate issues, offer support and solutions,” said Godi.

“Why did we reach this crisis situation? I am talking of the ministry. We cannot ignore that. Our wish is to find a solution that everybody remains in their position (to avoid retrenchments). The minister is not here. She is indisposed. They are failing us as a public broadcaster,” said Godi.

Chief financial officer in the Department of Communications Dikeledi Thindisa said there was a meeting planned between Mokonyane and Mboweni to resolve the issue of the bailout.

She said the SABC had painted a difficult picture about the state of affairs at the public broadcaster.

Makhathini said the SABC had financial obligations of R600 million a month and if it did not get a bailout by March next year the institution would collapse. He said the R3billion guarantee from government would allow the SABC to raise money from capital markets.

The SABC last got a guarantee in 2009 when it received a loan of R1.4bn from a bank. Makhathini said the SABC had been forced to go back

Why did the SABC fail to take action against officials for the irregular expenditure of R4.9 billion? It was wrong to take so long to act

to that situation of 10 years ago.

Members of Scopa said they were not happy with the crisis at the SABC.

Scopa also lambasted the SABC for failing to take action against officials for the irregular expenditure of R4.9bn.

The irregular expenditure was being investigated by the Special Investigating Unit.

Scopa said it was wrong for the public broadcaster to take so long before deciding to act against those behind the irregular expenditure.