Newsflash: MultiChoice’s risk and audit committee to investigate ANN7 deal

MultiChoice has instructed its audit and risk committee to investigate its deal with ANN7, the Gupta-aligned news channel hosted on DStv.

In a statement issued by independent non-executive director, Don Eriksson, the pay-TV giant said it had read media reports alleging MultiChoice had entered into an “an irregular relationship for the carriage of the ANN7 channel”.

Eriksson, said the board was aware that the ANN7 channel has caused real public concern because of the allegations of corruption levelled at the former owners of the channel, the Gupta family.

“These allegations have negatively impacted the reputation of MultiChoice,” Eriksson said.

The MultiChoice board has therefore instructed its audit and risk committees to assess whether there has been any corporate governance failures at MultiChoice and report back to the board. Based on what is contained in that report, the MultiChoice board will take the necessary action, he said.

Additionally, the committee has been ordered to draw on any expertise and skills necessary in order to fulfil the mandate given by the board. Finally, board member Advocate Kgmotso Moroka has been asked by the board and has agreed to, assist the audit and risk committees in this matter.

The board’s decision comes on the back of increasing consumer discontent over the company’s relationship with ANN7 and its deals with the SABC.