How the SABC blew hundreds of millions through dodgy deals: report

Documents seen by the City Press from the Special Investigating Unit’s (SIU) investigation into the SABC has revealed how the broadcaster blew hundreds of millions of rands under former COO Hlaudi Motsoeneng, through dodgy deals and bonuses.

The public broadcaster is currently on the brink of financial collapse, needing R600 million a month to operate, while only generating R380 million in revenue.

The SIU launched an investigation into the group and is currently in its first phase of taking a civil claim against former executives to court, where a new host of information has been revealed.

In the documents, seen by the City Press, the SIU is trying to recover funds that were given out in irregular conditions.

This includes a R11.8 million “success bonus” paid to Motsoeneng, and R62 million which was paid out to Gupta-owned media entities.

Another R27.7 million was paid out in a vanity project run by Motsoeneng, called the Heritage Concert, which was tied to his failed 90% local content policy.

R4.5 million was paid out for seven new websites, of which only one was ever created, and R19.9 million was paid out in a questionable accounting contract which ballooned from an initial price of R1.7 million.

The SIU also identified another ballooned contract of R52 million with another service provider.

The SABC confirmed that all of the contracts and payments are currently under investigation by the SIU, adding that the current management team inherited an irregular expenditure bill of R5.5 billion, the City Press reported.

Read: SABC will run out of money by March 2019: report

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How the SABC blew hundreds of millions through dodgy deals: report