Dlodlo wants a lasting solution to woes besetting the SABC

COMMUNICATIONS Minister Ayanda Dlodlo says she wants to find lasting solutions to the financial troubles facing the cash-strapped SABC.

“I am not looking for today or tomorrow’s solution. I am looking for a lasting solution to the problems of financial sustainability of the broadcasting corporation,” Dlodlo said.

She confirmed receiving a funding proposal from the SABC interim board.

“I have asked my financial team to sit down with me so as to take me through it. I have also asked them to sit with Treasury,” Dlodlo said.

On Wednesday, the SABC interim board notified Parliament’s communications committee that it had submitted its funding proposal to Dlodlo earlier in the day.

Dlodlo would not say how much the public broadcaster needed in the form of a cash injection.

Interim board chairwoman Khanyisile Kweyama was also mum on the amount when she broke the news of the funding proposal to the committee.

But, the state of finances at the corporation is so dire that the public broadcaster has come up with a raft of proposals it hopes will change the fortunes of the SABC in the next three years.

The SABC, which currently has just R110 million in reserves, recorded an operating loss of R509m as at the end of March. It reported losing millions due to the 90/10 local content policy unilaterally introduced by former COO Hlaudi Motsoeneng.

Spelling out key issues in a proposed turnaround at the SABC, Dlodlo said a moratorium had been imposed on capital expenditure.

“We have ensured that whoever is on paid suspension, those cases should be expedited so that a decision can be made whether or not they remain the employees of the corporation,” she said. We have decided to reduce the number of consultants the SABC uses. The sad state is that SABC was using financial consultants when they have almost 80 chartered accountants on their payroll,” Dlodlo said.

There is also a moratorium on leave encashment. Strategies of licence collection will also be improved. “The collection of licences is dismal. We have 150 staff members who are responsible for it. I have to deal with issues around the Labour Relations Act,” Dlodlo said.

She added that there would be an assessment of unprofitable television and radio programmes. The turn- around strategy, Dlodlo said, would also look at a different funding model to ensure financial sustainability of the SABC.

Tabling the public broadcaster’s three-year corporate plan, acting chief executive James Aguma said they were operating under tough conditions that were impacted on by the slow economic growth and their “ill-advised” decisions.

The SABC funding is comprised of 76% in advertising, 11% TV licence fees, 5% sponsorship, 3% government funding and 5% in other revenue.

Aguma said the unilateral decision on 90/10 local content on radio and television resulted in a loss of audiences and revenue. “The 90/10 content music quotas had an impact of R29m on radio and R183m on television,” he said.

According to Aguma, radio will continue to use services of producers and presenters to coin and deliver impactful programmes that appeal to the public.

“Radio will respond to the greater SABC digital strategy and continue to explore alternative offerings through online streaming, podcasts and cellphone broadcast to reach out to listeners with different interests.”

Aguma also said negotiations with sport rights holders for periods spanning between three and five years would be pursued. “The acquisition of digital rights will also provide the SABC with additional plat- form to broadcast sport, especially those events of national interest,” he said about a dedicated sports channel.

Television licence agreement would be reviewed and amended.

Board member Febe Potgieter-Gqubule said the board’s risk committee has already recommended the cancellation of contract of company doing the collections.

The contract comes to an end in July and the SABC licence department will take some elements if the licence collection.

“The feeling was it was much more efficient to do in-house,” she said.

Communications Minister Ayanda Dlodlo