At a briefing in Johannesburg on Wednesday‚ CEO Madoda Mxakwe said the SABC had suffered a net loss of R622-million for the 2017-2018 financial year‚ making it “technically insolvent” and unable to fulfil its financial obligations.
For the 2016-2017 financial year the broadcaster recorded a loss of R977-million‚ and R411-million in 2015-2016.
Axed COO Hlaudi Motsoeneng’s controversial 90% local-content policy attributed somewhat to the losses. The interim board has since ended this policy.
The SABC announced earlier this week that part of its restructuring process was to cut jobs.
The board warned that nearly 1‚000 permanent employees and about 1‚200 freelancers may be affected.
Mokonyane told MPs on Thursday that the turnaround of the broadcaster could not be based on the laying off of workers but a total review of the business and its funding model.