The SABC will finally get a portion of the promised government bailout on Monday, amounting to R2.1 billion out of the R3.2 billion it requested for its bailout.
It was required to meet eight conditions in order to access the funds and on 30 August 2019, had fully complied with five, partially met two, and had one still to submit.
The outstanding amount, R1.1 billion, therefore, would be “transferred once the public broadcaster fully meets the remaining three outstanding conditions or firmly demonstrates evidence to fully comply”, said communications minister, Stella Ndabeni Abrahams.
The SABC had:
- Determined immediate cash requirements supported by detailed cash flow projections for the next 12 to 18 months;
- Submitted a list of identified initiatives for revenue enhancement and costs-cutting initiatives;
- Conducted a thorough investigation into what caused the financial collapse of the SABC and why previous turnaround plans have failed to be successfully implemented;
- Provided an update of how the entity is dealing with the people implicated in the investigation report; and
- Developed a turnaround plan incorporating measures to prevent the reoccurrence of the identified factors. This must also take into account various reports including those of the Special Investigating Unit, Public Protector, Auditor General and Parliament.
The two conditions partially met were:
- Producing separate financial reporting for public and commercial broadcasting services; and
- Identifying non-core assets for disposal to assist with reducing the recapitalisation requirement from government.
But the SABC had not met the condition to develop a comprehensive Private Sector Participation (PSP) strategy that highlighted initiatives to be implemented and the net value to be derived from these partnerships.
DA spokesperson on communications, Phumzile van Damme, said the party would closely monitor how this money is spent, “and if any even the slightest financial mismanagement or any other malfeasance is detected, immediate action will be taken against the SABC”.
She said the DA was fully is aware the “complexities” and that the current SABC management and board could not “be blamed for the financial crisis the SABC has faced for the past two years, as it is a legacy of the Hlaudi Motsoeneng tenure”.
But this did not mean they would be “let off the hook”.
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