SABC bought a luxury SUV for chairman despite financial problems

The South African Broadcasting Corporation (SABC) splashed out R740,000 on a luxury SUV – an Audi Q5 – for former board chairman Mbulaheni Maguvhe, despite its financial woes, according to the Sunday Times.

The paper reported that the vehicle was used to chauffeur Maguvhe around, but is now unused in a parking lot of the state broadcaster’s head office in Auckland Park following his resignation at the end of 2016.

Maguvhe stepped down from his post following a parliamentary inquiry into the board’s fitness to hold office.

ANC Chief whip in Parliament Jackson Mthembu said Maghuve was a stumbling block to resolving the cooperate governance at SABC.

“It is unfortunate that Prof Maguvhe chose to sacrifice his personal reputation and professional integrity by putting his selfish personal interests ahead of those of South Africans, who are the shareholders of the SABC,” Mthembu said in a statement.

A report by parliament’s legal services in 2017 accused Maguvhe of trying to mislead the inquiry over the labour dispute between the SABC 8 and the SABC.

The SABC posted a R977 million loss after tax for the 2016/17 financial year, its annual report revealed.

The public broadcaster’s net loss for the year ending March 2017 more than doubled from R412 million in 2016, following a year of upheaval that included the dissolution of the permanent board in late 2016.

Revenue declined from R8.1 billion in 2016 to R7.6 billion, representing a 6% year-on-year decrease.

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SABC bought a luxury SUV for chairman despite financial problems