South Africans could sue the SABC over TV Licences: report
The SABC’s poor finances means it is unlikely to meet its financial obligations – and this will have a negative impact on people who have paid their television licence fees in advance.
This is according to Advocate Paul Hoffman SC, director of social rights group Accountability Now, who called for a class-action law suit against the SABC as he feels that South Africans are entitled to take steps to protect their “investment” in the services of the SABC, reports Fin24.
Hoffman cited the SABC’s audited financial statements for the financial year ended March 31 2017, which recorded R40.854 million in “deferred income” (money received for goods or services which have not yet been delivered) in respect of TV licence fees received in advance.
“The SABC will continue to be reliant on government guarantees for it to continue as a going concern. That is, the SABC is unable to sustain its operations from its own resources and is entirely reliant on state guaranteed funding,” Hoffman said.
“It seems the SABC, already illiquid as its board concedes, is additionally likely to become insolvent in the short term. Yet it continues to collect licence fees, annually in advance, thus increasing concurrent liabilities.”
Reliance on TV licences
Released in September 2017, the SABC’s most recent annual report showed a drastic decline in revenue from TV licences.
According to the 2017 report, revenue of R847.4 million was collected through television licence fees.
This figure is R449.4 million – 34.7% – below budget, representing a decrease of R178.5 million – 17.4% – compared to the previous year.
At the time, the SABC confirmed that the shortfall was due to the decline in revenue collections from renewals and debt collection revenue streams and that it was facing something of a financial crisis.
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