What did SABC do with R1.58 billion?
The Democratic Alliance wants answers from new Communications Minister, Yunus Carrim after the 2012/13 annual report for troubled state entity, the South African Broadcasting Corporation (SABC), revealed further financial mismanagement.
The DA noted that the public broadcaster’s 2012/13 annual report was tabled in Parliament on Tuesday (10 September), showing expenditure amounting to R1.58 billion, without supporting documentation.
The report also revealed R106.3 million in irregular expenditure and no evidence of the collection of TV license fees worth R913.8 million.
DA shadow minister of communications, Marian Shinn said that she will request that minister Carrim appear in Parliament to report on what steps he will be taking to improve the public broadcaster.
Yunus Carrim said in late July that a task team had been established to address the financial problems at the SABC.
The DA said that due to “significant matters”, auditor general Terence Nombembe, gave the SABC a Disclaimer of Opinion for the 2012/13 financial year.
“This is a regression from the qualified audit the SABC received last year,” the political party said.
The DA also pointed out that group CEO, Lulama Mokhobo, also confirmed that the SABC missed its performance targets set out in the government guarantee:
- Sponsorships were 50% (R368 million) lower;
- Sale content was 66% (R62 million) lower; and
- Advertising revenue was 4% (R190 million) below budget.
The political party also noted that the AG also found that the financial statements submitted by the SABC did not adhere to reporting standards, the Public Finance Management Act (PFMA) or the Companies Act.
“The SABC also did not effectively review their internal audit function, experienced leadership instability and the accounting authority did not exercise its oversight responsibility effectively.
“For the past six years, the SABC has lurched from crisis to crisis with no sight in end. The time for action is now,” the DA said.
It said that the public broadcaster is in dire need for effective leadership and a capable board. “Minister Yunus Carrim must roll up his sleeves and steer the SABC into calm waters.”
The DoC issued out the following statement on behalf of minister Carrim on Tuesday:
“We raised the shareholder’s concerns about the SABC’s financial performance at the recent Annual General Meeting. We have, in fact, already instituted a Joint Task Team (JTT), comprising of representatives of the Department of Communications, National Treasury, Auditor General’s Office and the SABC to consider the long-term financial sustainability of the public broadcaster, review the shareholder compact, fill the critical senior vacant posts, assist with progress on digital migration and secure clarity on the location of the new 24 hour news channel in the overall strategy of the SABC.
“The JTT works in a way that does not interfere in the operational autonomy of the SABC or the governance role of the Board. On behalf of the shareholder, our department will also exercise far more strategic oversight over the SABC.
“A turnaround will not happen overnight. But if all the relevant parties cooperate there will certainly be improvements over time.”
More on the SABC
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Carrim establishes SABC task team
SABC getting 24 hour news channel on DStv
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