The SABC has submitted a request to National Treasury for a R1 billion government bailout to help the broadcaster stay afloat.<\/p>\n
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.<\/p>\n
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\u00a0revised funding proposal.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n