Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      War of words erupts over home affairs database fee hike

      24 June 2025

      Don’t expect Starlink in South Africa anytime soon

      24 June 2025

      Finally! Tribunal unpacks why it blocked Vodacom’s Vumatel deal

      24 June 2025

      Samsung to unveil new folding phones at July event

      24 June 2025

      Capital Appreciation banks on payments to offset software slump

      24 June 2025
    • World

      Mira Murati’s Thinking Machines hits $10-billion valuation

      24 June 2025

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TechCentral Nexus S0E3: Behind Takealot’s revenue surge

      23 June 2025

      TCS | South Africa’s Sociable wants to make social media social again

      23 June 2025

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      South Africa risks being left behind as stablecoins reshape global finance

      6 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Broadcasting and Media » SABC is ‘technically insolvent’

    SABC is ‘technically insolvent’

    By Agency Staff28 August 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    The SABC is technically insolvent and is struggling to honour payments to service providers and contractual obligations.

    Some suppliers who have won bids at the SABC have indicated their unwillingness to take up the contracts due to broadcaster’s financial dire straits.

    SABC chief financial officer Yolande van Biljon said on Wednesday that the SABC’s financial position has since worsened and that it ended the previous financial year with a cash balance of only R72-million.

    There are instances where we are unable to honour payments and even unable to adhere to committed contracts

    “There are instances where we are unable to honour payments and even unable to adhere to committed contracts, which means we often need to renegotiate because we have been unable to meet the requirements.

    “Currently, the organisation is technically insolvent. We are also under tremendous strain towards being factually insolvent as a result of our liquidity issues. Cash is depleted and the trade and other payables amount to R1.8-billion as at June 2019.

    “There are a number of significant suppliers that make this up, notably Sentech (R554-million), our signal distribution provider, as well as SuperSport, Samro and various other content providers (amounting to R174-million). We have monthly engagements with all these parties,” she said.

    Ceased production

    Van Biljon said several content providers have ceased production and, with the public broadcaster relying on fresh content as a way of attracting advertising, the SABC is unable to generate the much needed advertising revenue and in turn, this affects its financial sustainability.

    “The crisis is a matter of urgency and certain terrible scenarios like black on air are a possibility. However, with the support of our shareholder (the department of communications & digital technologies), national treasury and all stakeholders, we have managed to avoid that to date.”

    Van Biljon said as a result of the public broadcaster’s known financial challenges, service providers who have won tenders have refused to accept the awards, adding that there has been an increased demands of upfront payments.

    Members of the national council of province’s select committee on public enterprises and communications were also told by the public broadcaster’s top management of the constant threat of the SABC being unable to pay salaries.

    Jonathan Thekiso, the SABC’s group executive for human resources, said due to its current financial challenges, the public broadcaster placed a moratorium on recruitment in September 2018.

    “As we speak, we have 257 acting incumbents across the organisation at a monthly cost of R1.8-million. Now, this may look like a saving for the organisation because the organisation is not paying full salaries but paying only acting allowances but these acting assignments are actually impeding the effective implementation of certain strategies within those environments,” he said.

    We are working on the pre-conditions for the bailout and these would really help to ensure that we deal with all the legacy issues

    Thekiso said the impact of this is that employees continuously become disengaged knowing there is a difficulty around the organisation being able to pay salaries.

    “There is a risk that if the organisation is unable to pay salaries, organised labour may take action in terms of approaching the relevant dispute resolution institutions and it might place difficulties across the organisation,” he said.

    Madoda Mxakwe, the public broadcaster’s CEO, said the SABC’s top management was, over and above ensuring that resources are managed prudently, working towards addressing the pre-conditions of national treasury ahead of receiving a capital injection.

    “We are working on the pre-conditions for the bailout and these would really help to ensure that we deal with all the legacy issues as well as the debt that the organisation has. We have been working very closely with Government Technical Advisory Centre (G-Tech) to look at all the pre-conditions that have been highlighted. Briefly, these also look at the historical issues that led to the collapse of governance as well as the financial processes at the SABC and also enhance the strategy that was developed,” Mxakwe said.  — SANews



    Madoda Mxakwe SABC top Yolande van Biljon
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWhy altcoins could be the next cryptos to rally
    Next Article Too late for local-loop unbundling in South Africa

    Related Posts

    Hiking TV licence fees won’t solve the SABC’s funding crisis

    29 May 2025

    SABC Plus tops a million registered users

    8 May 2025

    Outdated and costly: why South Africa should rethink digital migration

    2 April 2025
    Company News

    Communication costs exploding? Telviva has a fix for UK-SA teams

    24 June 2025

    Section 18A deductions and BEE points – a strategic choice for business compliance in 2025

    24 June 2025

    Huawei Watch Fit 4 Series: beauty, brains and a battery that won’t quit

    24 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.