SABC is down to reserves to fund operations, Kaizer Kganyago concedes
The SABC has confirmed that it is facing a financial crisis that has forced it to fund its operations from its dwindling reserves. “The SABC’s major sources of revenue are advertising revenue and sponsorships (85%) and TV licenses (12%), and we can confirm that these revenue streams are under pressure with the SABC now funding its activities from its reserves,” SABC spokesperson Kaizer Kganyago said on Thursday. This admission appears to contradict CEO James Aguma’s pronouncements in Parliament in February that the broadcaster was not in imminent danger, as it remained solvent because its assets exceeded its liabilities. Reports emerged last week that the SABC’s treasurer had 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 indicated that cash reserves plunged to R174m in December — down from more than R1bn in 2015. Kganyago said the utterances made by vari...
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