The SABC’s plan to cut costs, including going through a possible retrenchments programme, has hit a political brick wall.
Communications minister Nomvula Mokonyane on Monday said she is strongly opposed to any retrenchments at the public broadcaster, despite the corporation’s cash-flow crisis.
“The minister, as the shareholder representative, has on few occasions met with the board of the SABC and expressed her dissatisfaction with the preferred methods of implementation of the turnaround plan submitted by the board to the minister for concurrence,” she said in a statement.
“While the minister appreciates the precarious financial position of the public broadcaster and the urgent need to contain costs, the minister has lamented the fact that despite numerous meetings with the SABC board on the need for a comprehensive approach to a turnaround of the public broadcaster, the board has insisted on retrenchment as the foremost and only solution.”
The SABC met with representatives of organised labour last week to brief them on possible retrenchments under section 189 of the Labour Relations Act. The corporate employs 4 000 people and has an annual salary bill of R3.1-billion.
“As the shareholder, it is our considered view that any retrenchment exercise must be a last resort and an integral part of a holistic, well formulated and broadly canvassed turnaround plan aimed at steering the SABC towards future financial sustainability,” Mokonyane said in the statement.
‘Odd approach’
“The minister has raised her concerns with what she believes is an odd approach by the board of the SABC, which ignores the advice and support of the shareholder (government)… This is inconsistent with the principles of good corporate governance, mutual interest and public good.”
She said a turnaround plan presented by the SABC lacks details regarding how much retrenchments will save the corporation. They also don’t provide enough information on the potential impact on service delivery, she alleged.
She said the plan doesn’t explain how the SABC will manage and “balance out” the short- and medium-term challenges in order to achieve its long-term vision. Also, the plan is “silent on revenue-enhancement initiatives, including an improvement plan for the collection of television licence (fees) and the possible disposal of non-core and underutilised immovable assets and properties, which is crucial for the financial sustainability of the SABC”.
“The SABC is a national asset and as a public broadcaster its well-being is not the exclusive domain of the board and its management but that of all stakeholders with an interest in its sustainability — and those include the government (as shareholder), labour, civil society and the broader public.” — © 2018 NewsCentral Media