SABC to forge ahead with job cuts as it fails to raise cash from banks
The broadcaster tells communications portfolio committee it needs at least R3bn to stay afloat and that retrenchments are unavoidable
The loss-making SABC says no lender is prepared to do business with it amid a severe cash crunch that could result in the public broadcaster failing to pay salaries and service providers in the coming months. The broadcaster said this was owing to its disclaimer audit opinion and the fact that the auditor-general had raised doubts about its going-concern status. The broadcaster told members of parliament’s communications portfolio committee on Tuesday that retrenchments are unavoidable, despite objections by the government, labour and MPs. The planned job cuts are likely to affect close to 1,000 permanent employees and 1,200 freelancers. The SABC says it needs a cash injection of at least R3bn to stay afloat and possibly avert retrenchments. In September, the public broadcaster, which recorded a staggering loss of R622m in the financial year ended March, was granted borrowing powers and a borrowing limit of up to R1.2bn by the Treasury, in line with the Public Finance Management Act...
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