This levy would replace the current TV licence regime, which has not brought enough money to sustain the state broadcaster.<\/p>\n\n\n\n
Malatsi said the problem with the current TV License regime is the very low compliance and collection rate.<\/p>\n\n\n\n
He said that this low compliance rate from television set users means that SABC does not get enough revenue to fund its operations.<\/p>\n\n\n\n
It contributes to the deteriorating financial sustainability of the state broadcaster, which has become technically insolvent.<\/p>\n\n\n\n
It sparked a conversation about an alternative to TV licences to collect revenue for the SABC from television owners.<\/p>\n\n\n\n
Malatsi said he opposes imposing additional taxes on South African citizens as they are already heavily overtaxed.<\/p>\n\n\n\n
However, he said the country needs a new approach that would replace the current TV licence regime.<\/p>\n\n\n\n
Numerous mentions of the new levy to fund the SABC have been made, but the minister said there is no formal proposal regarding this issue.<\/p>\n\n\n\n
\u201cThe risk of a new levy is the additional cost it would have on South African consumers to fund television and media services,\u201d he said.<\/p>\n\n\n\n
He added that how people consume media services has shifted from using a television set to streaming through smartphones or laptops.<\/p>\n\n\n\n
The government has not yet determined the best way to handle this shift in consumer behaviour regarding funding the SABC.<\/p>\n\n\n\n
Malatsi said any solution should ensure that it does not burden consumers with additional costs or make it more challenging to do business in South Africa.<\/p>\n\n\n\n
The SABC is technically insolvent<\/strong><\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/01\/SABC-3-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nThe SABC\u2019s latest annual report revealed that the state broadcaster’s finances are dismal. Although it generated R4.98 billion in revenue, its expenses outweighed its income.<\/p>\n\n\n\n
This resulted in the SABC reporting a loss of R198 million for the year and a total comprehensive loss of R1.06 billion.<\/p>\n\n\n\n
The continued losses took their toll on the state broadcaster, which became technically insolvent over the last financial year.<\/p>\n\n\n\n
It reported assets of R4.09 billion and liabilities of R4.12 billion, leaving it with negative equity of R37 million.<\/p>\n\n\n\n
Negative equity means the company is technically insolvent and cannot settle all its liabilities if all its assets are liquidated.<\/p>\n\n\n\n
The SABC said it \u2018remains materially uncertain\u2019 whether it will be able to meet its obligations in the next twelve months.<\/p>\n\n\n\n
It will require severe austerity measures, including suspending more than 80% of the long-term capital plan and limiting content investment.<\/p>\n\n\n\n
\u201cIt must be noted that virtually no funding is currently available for any capital investment in innovation, infrastructure and technology,\u201d the SABC said.<\/p>\n\n\n\n
Despite the SABC\u2019s worrisome financial position, it has continued to compensate its employees and directors handsomely.<\/p>\n\n\n\n
The SABC\u2019s latest annual report revealed that the SABC has 2,234 employees, who earned an average of R653,900 each over the last financial year.<\/p>\n\n\n\n
The 11 top management employees earned an average of R2.9 million annually, while those in senior management earned R1.6 million.<\/p>\n\n\n\n
The SABC\u2019s 239 middle managers took home an average of R1.1 million over the last financial year.<\/p>\n\n\n\n
The state broadcaster spent R1.46 billion on its 2,234 employees, making them some of the highest-paid people in South Africa.<\/p>\n\n\n\n
The SABC\u2019s directors were equally well-paid, with sixteen directors earning a combined R18 million over the last year.<\/p>\n\n\n\n
Former SABC group chief executive officer Madoda Mxakwe was paid R2.1 million for three months of work.<\/p>\n\n\n\n
Mxakwe\u2019s five-year tenure as chief executive ended on 30 June 2023, three months into the financial year.<\/p>\n\n\n\n
He was the first SABC group chief executive officer to complete his contract at the state broadcaster in over 15 years.<\/p>\n\n\n\n
SABC CFO Yolande van Biljon received R3.5 million over the last year, and COO Ian Plaatjies was paid R3.4 million.<\/p>\n\n\n\n
SABC chairperson Khathutshelo Ramukumba received R1.1 million, while the other non-executive directors received between R552,000 and R951,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
Communications Minister Solly Malatsi said they are looking for a new funding model for the SABC which would not place an additional burden on consumers.<\/p>\n","protected":false},"author":10,"featured_media":815413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[22023,667,20317],"class_list":["post-816913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-communications-minister-solly-malatsi","tag-sabc","tag-solly-malatsi"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=816913"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816913\/revisions"}],"predecessor-version":[{"id":816971,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816913\/revisions\/816971"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/815413"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=816913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=816913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=816913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/a><\/figure>\n\n\n\nThe SABC\u2019s latest annual report revealed that the state broadcaster’s finances are dismal. Although it generated R4.98 billion in revenue, its expenses outweighed its income.<\/p>\n\n\n\n
This resulted in the SABC reporting a loss of R198 million for the year and a total comprehensive loss of R1.06 billion.<\/p>\n\n\n\n
The continued losses took their toll on the state broadcaster, which became technically insolvent over the last financial year.<\/p>\n\n\n\n
It reported assets of R4.09 billion and liabilities of R4.12 billion, leaving it with negative equity of R37 million.<\/p>\n\n\n\n
Negative equity means the company is technically insolvent and cannot settle all its liabilities if all its assets are liquidated.<\/p>\n\n\n\n
The SABC said it \u2018remains materially uncertain\u2019 whether it will be able to meet its obligations in the next twelve months.<\/p>\n\n\n\n
It will require severe austerity measures, including suspending more than 80% of the long-term capital plan and limiting content investment.<\/p>\n\n\n\n
\u201cIt must be noted that virtually no funding is currently available for any capital investment in innovation, infrastructure and technology,\u201d the SABC said.<\/p>\n\n\n\n
Despite the SABC\u2019s worrisome financial position, it has continued to compensate its employees and directors handsomely.<\/p>\n\n\n\n
The SABC\u2019s latest annual report revealed that the SABC has 2,234 employees, who earned an average of R653,900 each over the last financial year.<\/p>\n\n\n\n
The 11 top management employees earned an average of R2.9 million annually, while those in senior management earned R1.6 million.<\/p>\n\n\n\n
The SABC\u2019s 239 middle managers took home an average of R1.1 million over the last financial year.<\/p>\n\n\n\n
The state broadcaster spent R1.46 billion on its 2,234 employees, making them some of the highest-paid people in South Africa.<\/p>\n\n\n\n
The SABC\u2019s directors were equally well-paid, with sixteen directors earning a combined R18 million over the last year.<\/p>\n\n\n\n
Former SABC group chief executive officer Madoda Mxakwe was paid R2.1 million for three months of work.<\/p>\n\n\n\n
Mxakwe\u2019s five-year tenure as chief executive ended on 30 June 2023, three months into the financial year.<\/p>\n\n\n\n
He was the first SABC group chief executive officer to complete his contract at the state broadcaster in over 15 years.<\/p>\n\n\n\n
SABC CFO Yolande van Biljon received R3.5 million over the last year, and COO Ian Plaatjies was paid R3.4 million.<\/p>\n\n\n\n
SABC chairperson Khathutshelo Ramukumba received R1.1 million, while the other non-executive directors received between R552,000 and R951,000.<\/p>\n","protected":false},"excerpt":{"rendered":"
Communications Minister Solly Malatsi said they are looking for a new funding model for the SABC which would not place an additional burden on consumers.<\/p>\n","protected":false},"author":10,"featured_media":815413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[22023,667,20317],"class_list":["post-816913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-communications-minister-solly-malatsi","tag-sabc","tag-solly-malatsi"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=816913"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816913\/revisions"}],"predecessor-version":[{"id":816971,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/816913\/revisions\/816971"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/815413"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=816913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=816913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=816913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}