Johannesburg- Friday, 14 September 2018-The South African Broadcasting Corporation (SABC) met with organised labour yesterday to inform them that the organisation contemplates implementing section 189 of the Labour Relations Act (LRA). This forms part of the cost cutting measures, which includes the assessment of key cost drivers, in order to make the organisation financially sustainable and fit for purpose.
The SABC Group Chief Executive Officer, Madoda Mxakwe addressed staff on Friday, 14 September 2018 and communicated the dire financial state that the SABC finds itself in. He explained that the SABC had a demanding financial year with total revenue of R6.6 billion against a budget of R7.3 billion resulting in an underperformance of R709 million (10%). The SABC had a net loss of R622 million for the 2017/18 financial year. One of the SABC’s biggest cost drivers is the salary bill. To put this into context, the SABC is a R7.2 billion revenue generating company with a salary bill of R3.1 billion. The current ratio of revenue to wage bill is not sustainable given the SABC’s dismal financial situation. It is for this reason that the SABC is contemplating other cost cutting measures to further reduce costs.
THE REVIEW OF PUBLIC BROADCASTING POLICY
EXECUTIVE SUMMARY
- The SABC submits that public broadcasting has an even more important role to play in a world dominated by privately-owned, often global, entities that are primarily driven by commercial interests.
- The SABC not only represents the soul of the nation and its creative potential but is one of the bedrocks of South African culture, showcased by our television productions, our films, radio shows and our music in all our languages.
Minister of Communications, Nomvula Mokonyane. Deputy Minister of Communications, Pinky Kekana
Mr Mziwamadoda Kalako, MP, Portfolio Committee on Communications
Colleagues from the broadcasting and audiovisual content industries
This colloquium comes at a crucial, opportune and exciting time for the SABC as we continue the process of rehabilitation and the renewal of the public broadcaster. While we are still dealing with the financial consequences of well-documented governance failures, the SABC believes these issues are being dealt with so we can put that chapter firmly behind us. To this end, good progress has been made in terms of stabilising the SABC, strengthening governance and regaining integrity.
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Johannesburg – Tuesday, 4 September 2018 – The South African Broadcasting Corporation (SABC) held its Annual General Meeting (AGM) on 27 August 2018 to communicate its 2017/18 financial statements.
The year under review saw the SABC being stabilised, governance improving and the Board taking steps to fill vacant executive management positions.
The SABC is one of the key institutional pillars of our democracy, delivering essential content to millions of South Africans on multiple platforms. To this end, the SABC contributes to the strengthening of democracy by promoting nation building and social cohesion, through compelling and accessible local content programmes. The SABC’s services are therefore fundamental to the democratic and cultural life of citizens.
