The SABC is potentially facing a total broadcasting blackout because of spiraling debt woes and lack of relief funding, the Sunday Times reports.<\/p>\n
SABC CEO Madoda Mxakwe told the Sunday paper that the public broadcaster cannot pay its creditors and while the company\u2019s application for a R6.8 billion bailout was approved, the funds have not yet arrived.<\/p>\n
National Treasury agreed to provide the SABC with interim financial relief in March, to prevent the broadcaster from collapsing. It was declared technically insolvent at the end of January 2019.<\/p>\n
If it is unable to secure sufficient funding, the SABC will be forced to cut its national broadcast due to the inability to continue operations, the Sunday Times said.<\/p>\n
\u201cWe never had a blackout before, but if the funding doesn\u2019t come soon the possibility of a blackout is imminent,\u201d Mxakwe said.<\/p>\n
According to the report, the minister of communications said that government funding to help relieve state-owned enterprises would only be available from September, and a committee has been established to discuss the importance of providing a bailout to the SABC.<\/p>\n
The SABC is currently supported through a government guarantee, which allows it to apply for loans through commercial banks despite its precarious financial position.<\/p>\n
Mxakwe added that the SABC is also conducting internal investigations into the irregular promotion or appointment of 30 senior managers.<\/p>\n
In addition to an inflated salary cost and allegations of mismanagement and corruption, the SABC has also noted an industry-wide decrease in advertising over the past 24 months, further straining the financial stability of the public broadcaster.<\/p>\n
The public broadcaster reportedly needs R600 million a month to operate, but only generates R380 million in revenue.<\/p>\n
President Cyril Ramaphosa recently appointed eight new board members to fill the vacancies on the SABC board, giving the new members a mandate to secure the sustainability of the broadcaster.<\/p>\n
According to statistics revealed by the SABC in October<\/a><\/strong>,\u00a0\u00a0the group billed R3.378 billion in TV Licences, but only pulled in revenue of R941 million \u2013 indicating a 27.8% compliance level.<\/p>\n
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