The South African Broadcasting Corporation (SABC) after a R3.2 billion government bailout, faces a financial crisis jeopardising its future
Deputy Minister of Communications Philly Mapulane expressed concern before Parliament’s portfolio committee, noting that the pricey turnaround plan failed to improve SABC’s finances
What happened to SABC’s R3.2bn?
SABC has a track record of corruption and fraud, significantly diminishing the company’s operational effectiveness. According to Broadband, former SABC board member Mathatha Tsedu, said mismanagement of funds and corruption burden the organisation, making it impossible to achieve positive financial outcomes.
It isn’t surprising that the R3bn life jacket resulted in increased chaos. SABC’s history includes corruption allegations ranging from security tender mismanagement to bribery scandals.
Minister Philly Mapulane emphasized the need for intervention, stating,
“We are back to where we were, if not in a worse position than when we started with a bailout.”
SABC board chairman Khathutshelo Ramukumba pledged to submit the new turnaround plan to the Minister of Commerce by month-end. However, the current confidence in this plan appears weak, as the deputy minister disclosed that SABC’s request for an additional R1.5 billion had been rejected. Mapulane hopes SABC will get even more funding granted in the 2024 Budget Speech.
Mathatha Tsedu further criticised the management and organization of the company. Another governmental bailout would not be advantageous for a company in need of additional support to operate within the law
What can SABC do to recover?
SABC’s CFO, Yolande van Biljon was brutally honest and said SABC may need to apply for business rescue. The broadcaster’s management would need to be taken over to address financial mismanagement.
Despite the ongoing financial crisis, SABC can avoid business rescue by addressing its management system and cracking down on corruption.
Confidence in the network remains intact, and there is optimism for a comeback. A well-crafted turnaround plan has the potential to bolster confidence in SABC and secure additional funding in the future.