The South African Broadcasting Corporation (SABC) has asked the government for at least R2 billion (US$120 million) in the short term to bail the corporation out of its financial crisis. Should the SABC fail to secure the funding and if the current heavy losses sustained every month continue, the organisation would require R6 billion from the government over the next five years if the SABC was expected to carry out its mandate as a public broadcaster, said Gab Mampone, the acting group chief executive.
He said the financial problems were in part due to a drop in income from advertising and the rising costs of broadcasting. “We have a shortfall every month, and have had to reprioritise, making cutbacks throughout the organisation, still this is not sustainable - we need a bailout.”
The growing financial woes of the corporation have been preceded by infighting among board members, clashes between senior executives and allegations of corporate breaches in which Kanyisiwe Mkhonza, the board chairwoman, allegedly held meetings with unions to discuss salary increases without informing the management, whose duty it is to negotiate on remuneration.
ANC sources in Parliament said Mkhonza was the catalyst for most of the current crisis and would be forced out if she did not resign. Joe Makhafola, the spokesperson for Minister of Communications General Siphiwe Nyanda, said the department has not as yet given its support to the bailout request from the SABC to the National Treasury. General Nyanda is due to meet the board on 5 June.
(Source: Cape Argus)
