SABC needs R3bn from government
The revelation in Parliament is the first time the amount needed by the cash-strapped public broadcaster has been made public
Treasury is considering a request by the SABC for a guarantee of R3bn, Parliament’s standing committee on finance was told Wednesday. This is the first time that the exact amount required by the public broadcaster has been made public. Granting the guarantee would raise total state guarantees which stand at R474bn, up from last year’s R470bn. Government’s contingent liabilities in the form of guarantees are of concern to credit ratings agencies, particularly because of the precarious state of several state owned enterprises. 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 it is feared it could collapse should it fail to get the guarantee.
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