The SABC has axed two senior executives, Ian Plaatjes and Merlin Naicker, over secrecy in a multimillion-rand advertising deal related to the SABC Plus streaming service.

The two were suspended in February for failure to disclose a 7.5% profit-share deal with Discover Digital, which runs the SABC Plus platform on behalf of the public broadcaster.

“The board has duly considered the findings and recommendations of the report by an independent chair and decided to release Mr Plaatjes from his duties as the SABC’s chief operating officer with immediate effect. The SABC can also confirm that the group executive for video entertainment, Mr Merlin Naicker, is also released from his duties with immediate effect after a disciplinary hearing,” said Mmoni Seapolela, acting SABC executive for corporate affairs and marketing, in a statement.

The February suspensions of Plaatjes and Naicker by the SABC coincided with the resignation Reginald Nxumalo, the SABC’s former head of advertising sales.

City Press at the weekend reported that legal firm Werksmans Attorneys advised the SABC on the matter. According to Werksmans, Plaatjes, Naicker and Nxumalo were allegedly deliberate in hiding crucial information relating to the profit-share deal in their presentation to the SABC’s executive committee. The trio allegedly misled the committee into believing that the SABC would get 100% of the advertising profits from the deal.

The clause relating to the 7.5% profit-share agreement was picked up by SABC’s legal team nine days after the executive committee had approved the proposal. According to Werksman, Nxumalo “was aware of the 7.5% as a number but could not join the dots on what was for. His response was tantamount to withholding vital information.”

Upgrades

SABC Plus has proved a hit for the broadcaster. Seapolela told TechCentral that in the first three weeks of June, the platform had garnered 4.6 million unique views. SABC Plus is reliant on advertising for revenue, but Seapolela said the company is “exploring other revenue streams for the platform”, with TV licence fees not being one of them.

In July, the SABC announced sweeping technical upgrades to SABC Plus, including an improved interface, personalised recommendations and a catch-up service. Sign-in credentials, which were dropped from the platform in December 2023, have been reintroduced with the most recent upgrade. – © 2024 NewsCentral Media