MPs urged to rein in SABC after it posts huge losses

AG’s office also fingers Icasa and advises broadcaster to start collecting licence fees to balance its books

THE OFFICE of the auditor-general has called for Parliament to rein in the SABC over its financial shambles, resulting in R413 million in irregular expenditure and R18.8m in fruitless and wasteful expenditure.

A corporate executive at the AG’s office, Alice Muller, yesterday called on MPs to tighten controls at the SABC.

She was briefing the port- folio committee on communications on the finances of the SABC and other entities, including the Independent Communications Authority of South Africa (Icasa), Brand SA and the Film and Publications Board.

Muller said there was failure to rein in people in charge at the SABC and other entities.

“The lack of consequence management at the SABC and Icasa – we mention these two because they have the highest irregular expenditure – was a serious concern,” she said.

The R413m irregular expenditure and R18.8m fruitless and wasteful expenditure at the SABC comes after the company posted a heavy financial loss this year.

The SABC suffered a loss of R401m due to issues of poor collection of licence fees and other matters. Briefing MPs, Muller said the SABC received a qualified audit opinion this year.

“They were disclaimed three years ago. When we disclaimed them in 2012, they had a number of qualification areas. This year they have three qualifications areas. This is licence fees, and there is qualification on taxation. They are qualified on irregular, fruitless and wasteful expenditure,” Muller pointed out.

“A lot is happening at the SABC to deal with qualifications. We have asked the management to deal with issues of internal control,” she said.

She said there were a number of things that needed to be done to get the SABC right.

“We assessed the SABC on their financial health, and they will be in a healthy position if they recovered the licence fees and the losses this year,” Muller added.

She said the SABC and Icasa were two entities in communications with the highest irregular expenditure. Action needed to be taken to cut down on irregular expenditure at the SABC, Muller said.

The SABC’s financial statements contained a lot of mistakes, she said, adding that all the entities in communications, except the SABC, had managed to fix all the mistakes in their financial statements.

Muller also told MPs that the irregular expenditure was less than that of last year.

Communications Minister Faith Muthambi acknowledged the reduction in fruitless and wasteful expenditure at the SABC.

She expressed concern at the lack of consequences at the SABC and other entities.

“It appears there is a lack of consequence management implementation. I have also requested the entities to give their management plan, because some of the wasteful expenditure could have been avoided,” Muthambi said.