The public broadcaster, the SABC, is expected to get the remaining R1.1 billion of its R3.2 billion bailout by the end of next month, the National Treasury said on Wednesday.<\/p>\n
This comes after the SABC Board was informed that it would get the bailout in phases – provided that it meets certain conditions as part of its turnaround strategy.<\/p>\n
Government allocated R3.2 billion to the SABC in 2019\/20, of which R2.1 billion has been transferred, to enable the broadcaster to pay its bills.<\/p>\n
\u201cThe conditions included reviewing broadcasting sector policies to respond to advances in technology, costing the developmental mandate and evaluating opportunities for private-sector participation.<\/p>\n
\u201cThe remaining R1.1 billion is expected to be transferred to the SABC by 31 March 2020,\u201d said Treasury on Wednesday, during the tabling of the 2020 Budget Speech.<\/p>\n
Additional funding of R576 million for Denel<\/strong><\/p>\n Meanwhile, state-owned military and aerospace equipment manufacturer, Denel, which is facing serious liquidity problems, would be allocated an additional R576 million<\/p>\n Government\u2019s initial response to the entity\u2019s challenges was an allocation of R1.8 billion in 2019\/20.<\/p>\n \u201cState guarantees granted to the entity amount to R6.9 billion. Additional funding of R576 million is allocated for 2020\/21.<\/p>\n \u201cThis support is allocated with conditions that emphasise the need for Denel to speedily implement its turnaround plan. The plan includes exploring private-sector participation, optimising its property and plant, and developing an appropriate funding model. It is critical for government to define Denel\u2019s role in a modern defence industry.\u201d<\/p>\n Transnet borrows on the strength of its own balance sheet<\/strong><\/p>\n National Treasury said Transnet\u2019s net profit increased from R4.9 billion in 2017\/18 to R6 billion in 2018\/19, supported by fair-value adjustments on leased investment properties.<\/p>\n \u201cTransnet, which borrows on the strength of its own balance sheet, raised R6.7 billion through commercial paper, bank loans and development finance institutions in 2018\/19.<\/p>\n \u201cIt invested R14.7 billion to maintain rail and port capacity, and R3.2 billion to expand infrastructure and equipment.<\/p>\n \u201cRating agencies downgraded Transnet\u2019s credit rating, citing increased liquidity risk as a result of loan covenants triggered by an audit qualification on the 2018\/19 annual financial statements.\u201d<\/p>\n
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