SABC now allowed to borrow even more, as doubts remain about its going-concern status
The Treasury says permitting the SABC to lift its borrowing limits does not amount to a government guarantee
The loss-making SABC is breathing a sigh of relief after the Treasury acceded to its request to increase its borrowing limits from capital markets. Communications minister Nomvula Mokonyane disclosed this week that the public broadcaster, which recorded yet another staggering loss of R622m in the financial year ended March, has been granted borrowing powers and a borrowing limit of up to R1.2bn by the Treasury, in line with the Public Finance Management Act (PFMA). The auditor-general has raised doubt about the broadcaster’s ability to continue as a going concern, as it continues to struggle to meet most of its financial obligations. In the 2016-2017 financial year, the SABC recorded a loss of R977m. In 2017, the SABC approached the Treasury in a bid to secure a R3bn government guarantee. To date, the financially hamstrung public broadcaster has failed to raise funding from financing institutions while it awaits the outcome of its appeal to the Treasury. It has sunk deeper into fina...
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