The SABC has submitted a request to National Treasury for a R1 billion government bailout to help the broadcaster stay afloat.
The department of communications has confirmed that the submission has been made, with the ball now in Treasury’s court whether or not the request will be granted.
The SABC announced it would approach government for the funds at the WEF held earlier in the year, and was working on the final draft of a revised funding proposal.
The public broadcaster has been wracked by mismanagement over the past few years, as its previous board and management team failed to run the media group effectively.
One of the biggest financial losses was due to a ‘90% local’ content policy instituted by former COO, Hlaudi Motsoeneng, which cost the broadcaster millions of rands to sustain.
Motsoeneng was recently fired from the company, following disciplinary hearings that found he had damaged the company. He was previously fingered in a Public Protector report, which found he had mismanaged the company, and had lied about his qualifications.
Another billion-rand bailout at a state-run company would be yet another blow to the South African economy, following the R2.2 billion bailout approved for SAA over the past weekend.
Ratings firms have warned that the continued mismanagement of state-owned enterprises (SOEs) will continue to drag the economy down, and push the country deeper into junk status.