Communications Minister Stella Ndabeni Abrahams has just announced that the SABC will receive R2.1bn as part of a R3.2bn bailout. The ANC regime is pumping billions of rand into the ineffective SOE and has now been warned that no further aid will be provided.
The struggling national broadcaster once again got money from the state coffers to continue its mismanagement. However, the government apparently set strict conditions before the money was released. The conditions include that the public broadcaster must present a list of identified initiatives to improve its inputs, submit ideas to save costs as well as conduct a thorough investigation into the cause of its financial collapse and a separate financial reporting for providing public and commercial broadcasting services. Abrahams says that the SABC currently meets most of the conditions set by the government.
Meanwhile, experts say that the SABC should first get rid of its weakest divisions, but its sale will apparently only be a small drop in the bucket.
The SABC is struggling to pay its creditors. At the end of January 2019, it was declared technically insolvent. In March, the Treasury agreed to give the SABC interim financial relief to prevent the broadcaster from collapsing. Notoriously, the national broadcaster still needs more than a billion rand to get out of trouble, but whether poor governance and questionable council are capable of better results is questioned by experts and economic advisers.
The dire state of the SABC does not mean that the CEOs pay the price. In fact, they still receive very high salaries. SABC CEO Madoda Mxakwe received a total pay package of R3.9m for 9 months of work at the state broadcaster. Chris Maroleni, chief operating officer, was paid R4.1m over the past financial year and former acting CEO Nomsa Philiso received R2.6m.
The top executives of the SABC and the total remuneration of the board over the past year were R42.5 million.