FINANCIAL WOES
Treasury still mulling over SABC’s R1bn funding request
Treasury is 'still applying its mind to the SABC request' as losses at the public broadcaster mount
Uncertainty still shrouds the R1bn government guarantee the South African Broadcasting Corporation (SABC) requested from the Treasury amid growing concerns that the public broadcaster may be running into deeper financial difficulties. In May, the Treasury rejected the SABC’s initial request for a government guarantee amid concern it lacked accountability and a sound financial plan. The SABC is in deep financial trouble and fears are that it could collapse should it fail to get the guarantee. It has been struggling to meet its obligations, including the payment of service providers. Its huge losses have been attributed partly to axed executive Hlaudi Motsoeneng’s controversial 90% local content policy, which the interim board has since canned. Parliament heard in June that the SABC was expecting to end the 2016-17 financial year with a net loss of R1.1bn. It recorded a loss of R411m in 2015-16, up from R395m the previous year. Finance Minister Malusi Gigaba’s spokesman, Mayi-hlome Ts...
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