Last year, the auditor-general was concerned about state-owned broadcasting signal distributor Sentech’s ability to continue as a going concern. But the company appears to be on the mend following an aggressive turnaround strategy introduced by former chairman Quraysh Patel and an oversight committee.

Sentech presented its medium-term strategic plan to parliament’s portfolio committee on communications last week, boasting a cash position of R468m. This is in stark contrast to its presentation in September last year when it warned four of its five business units were not making money.

The company came under fire in parliament last year after revealing it only managed to bring in 61% of the money it was owed and that irregular expenditure was off the charts.

However, newly appointed CEO Setumo Mohapi says that since then Sentech has increased collections from 61% to 95% and that all departments were being strictly monitored in this regard. “This way we can guarantee that we get cash from operations.”

Mohapi says part of the turnaround strategy has included a clampdown on irregular and wasteful expenditure.

Sentech came into rare praise from the committee, with members saying the company appeared to have turned the corner. Democratic Alliance MP Natasha Michael says the new leadership has done a good job.

“This is a substantial improvement and clearly the stabilisation programme put in place last year has taken effect,” she says. — Candice Jones, TechCentral