{"id":794514,"date":"2024-10-10T07:30:00","date_gmt":"2024-10-10T05:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=794514"},"modified":"2024-10-09T14:58:44","modified_gmt":"2024-10-09T12:58:44","slug":"sabcs-new-plan-to-raise-funds-with-tv-licence-changes-coming","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/media\/794514\/sabcs-new-plan-to-raise-funds-with-tv-licence-changes-coming\/","title":{"rendered":"SABC’s new plan to raise funds – with TV Licence changes coming"},"content":{"rendered":"\n

The South African Broadcasting Corporation is set to auction off three pieces of land in Durban Central to raise funds.<\/p>\n\n\n\n

Broll\u00a0Auctions\u00a0and\u00a0Sales will auction the three vacant portions of its high-value vacant land in Durban Central, adjacent to Kingsmead Cricket Stadium, on October 16.<\/p>\n\n\n\n

The three portions of the single erf have a combined 8,944 sqm of space, and the area is surrounded by hospitals, shops, hotels and businesses, such as the SABC, UNISA and the Durban ICC. <\/p>\n\n\n\n

There are also a wide variety of residential properties. <\/p>\n\n\n\n

\u201cThe zoning of General Business 3 offers an exceptional opportunity for investors to start with a blank canvas and bring their development ideas to life,\u201d said\u00a0Broll\u00a0Auctions\u00a0and\u00a0Sales\u00a0broker Jaclyn Nair.<\/p>\n\n\n\n

Any development has a maximum height of seven storeys and 80% coverage. <\/p>\n\n\n\n

Broll\u00a0Auctions\u00a0and\u00a0Sales said that several developers have already expressed interest in the sites, which are located near the Kingsmead Cricket Stadium.<\/p>\n\n\n\n

Possible uses could include a sports club with facilities that could include a retail component and highly popular padel courts, a residential development, and, of course, mixed-use facilities to cater to the live-work-play sector. <\/p>\n\n\n\n

The land forms part of a multi-property\u00a0auction\u00a0at the Wanderers Club in Johannesburg.\u00a0<\/p>\n\n\n\n

Stanlib Asset Management said the auction will attract significant buyer interest.<\/p>\n\n\n\n

The SABC must raise cash despite receiving its first unqualified audit in 14 years. <\/p>\n\n\n\n

The SABC\u2019s latest annual report revealed that the state-owned enterprise is technically insolvent.<\/p>\n\n\n\n

The state broadcaster tabled its 2023\/24 annual report in parliament, which revealed a loss before interest and tax of R192 million.<\/p>\n\n\n\n

In addition, the SABC reported negative equity in its Statement of Financial Position as of 31 March 2024.<\/p>\n\n\n\n

This means the company is technically insolvent and cannot settle all its liabilities if all its assets are liquidated.<\/p>\n\n\n

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Other plans to raise funds <\/strong><\/p>\n\n\n\n

To raise funds, the SABC also plans to abolish the TV licences and introduce a host of new levies as per new legislation. <\/p>\n\n\n\n

It was estimated that over 9 million South Africans owe the SABC R44 billion in unpaid TV licence fees. <\/p>\n\n\n\n

The South African Broadcasting Corporation Bill was introduced to Parliament in October 2023 and revived in July of this year, following the seventh administration’s swearing-in and the Government of National Unity (GNU). <\/p>\n\n\n\n

Notably, there are no funding models in the Bill, which states that the minister of communications and digital technologies will have to develop a model for funding the SABC in three years. <\/p>\n\n\n\n

During oral hearings on the Bill before the Portfolio Committee on Digital Technologies and Communications<\/a>, the SABC suggested introducing a device-independent levy, essentially a household levy based on the ability to access the SABC’s services without having a TV. <\/p>\n\n\n\n

The SABC also suggested being the dominant subscription broadcaster levy, where a dominant subscription broadcaster, such as MultiChoice, can assist the SABC. <\/p>\n\n\n\n

In this levy, the dominant subscription broadcaster can deny customers a service unless they pay their licences. <\/p>\n\n\n\n

The SABC also suggested that it access the Universal Service Fund (USAF), which is run by the Independent Communications Authority of South Africa.<\/p>\n\n\n\n

The USAF received funds from broadcasters and telcos who pay a fee based on their annual turnover for universal services of electronic communications network services.<\/p>\n\n\n\n

The SABC noted that Section 88(1) of the Electronic Communications Act allows broadcasters access to a USAF subsidy for constructing or extending electronic communications network services in under-serviced areas. <\/p>\n\n\n\n

The SABC said it could thus use the USAF to finance its underfinanced public service mandate.<\/p>\n\n\n\n

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Four big South African companies are technically insolvent<\/a><\/blockquote>