SABC running out of cash, says report
December reserves are down to R174m while the public broadcaster needs at least R650m every month
The SABC’s treasury has warned its management that the broadcaster would soon run out of cash unless it raised new funding urgently. A confidential treasury risk committee report up to January 31 2017 paints a disastrous picture. Cash reserves plummeted to R174m in December — drastically down from more than R1bn in 2015. This is not enough to keep the broadcaster going. It is understood that the report was presented to SABC executives in February. Despite this, acting CEO James Aguma told Parliament on February 28 that the SABC’s financial performance was "satisfactory". "Note: the liquidity requirement of SABC is R650m a month on average," the report warns. Dealing with the SABC’s financial crisis is probably the most pressing task facing the interim board expected to be appointed by President Jacob Zuma this week.Parliament’s inquiry into the SABC blamed the board and executive, especially former chief operating officer Hlaudi Motsoeneng and Aguma, for the crisis. Witnesses told ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.