<\/p>\n
The SABC has recorded nearly R500 million in net losses in six months into the 2023\/24 financial year, Deputy Minister of Communications and Digital Technologies Philly Mapulane said on Tuesday.<\/p>\n
He revealed this during a briefing by the board and management to the communications and digital technologies portfolio committee on the public broadcasters\u2019 corporate plan.<\/p>\n
The tabling of the plan in Parliament was delayed after the board was given an opportunity to develop it following the delay in the board\u2019s appointment in April.<\/p>\n
Mapulane said the department had information on the latest financial performance of the SABC, and officials were analysing the public broadcaster\u2019s third quarter financial report. <\/p>\n
\u201cAlready there is information we received that there is a net loss of about R464m a year to date. While the corporate plan is projecting a surplus in terms of revenue, information at our disposal indicates there is a net loss of just below R500m,\u201d he said.<\/p>\n
Mapulane said that the SABC should revise the targets set in the corporate plan, saying the available evidence was not consistent with the figures presented.<\/p>\n
Board chairperson Khathutshelo Ramukumba noted that the corporate plan was adopted around April.<\/p>\n
\u201cThere are certain commitments that will not reflect the current status of affairs.<\/p>\n
\u201cOur view is the approach is not to make changes to this plan we adopted but report on the status quo that may have changed,\u201d he said, adding that they would present quarterly reports.<\/p>\n
In terms of its corporate plan, the SABC hopes to secure a profit of R56.6 million and targeted R6.5 billion in revenue expenditure, with 38% growth.<\/p>\n
CFO Yolande van Biljon said their revenue had consistently dropped, mainly due to declining audience ratings.<\/p>\n
Van Biljon noted that the going concern status of SABC remained a challenge.<\/p>\n
\u201cIf our revenue growth does not live up to expectations, our going concern is under significant pressure. Our revenue struggles to recover to pre-Covid-19 levels.\u201d<\/p>\n
Van Biljon told the MPs that the SABC\u2019s cost of delivering the unfunded mandate would amount to as much R7.4 billion over the Medium Term Expenditure Framework (MTEF), and that the cost of content alone ranged between R700m to R800m a year.<\/p>\n
Mapulane said the SABC had implemented a turnaround strategy over the past three years, but still posted losses.<\/p>\n
\u201cThe SABC will develop a strategy to improve the financial position, which as we know, despite huge capital injections and a turnaround plan implemented over the years, the SABC has not managed to turn around \u201cWe are looking forward to receiving that strategy to be submitted by 30 November,\u201d he said.<\/p>\n
Mapulane also said the ministry was concerned with the SABC\u2019s escalating debt for signal distribution costs owed to Sentech.<\/p>\n
\u201cAs at the end of September the debt was R745m. This is a significant figure. If this is allowed to continue like this, it is going to impact sustainability.\u201d<\/p>\n
He added that the SABC had lodged a dispute over Sentech\u2019s tariffs but the Competition Commission declined to consider it.<\/p>\n
\u201cWe look forward to the two boards resolving this issue in an amicable way.<\/p>\n
We would like to appeal to the SABC board and management to service this debt,\u201d he said.<\/p>\n
\u201cEven if it were to be determined the tariff is high, the SABC will still be liable to pay the debt. This issue needs to be attended to as a matter of urgency,\u201d Mapulane said.<\/p>\n
The deputy minister also revealed that the SABC had submitted a request to the National Treasury for an additional R1.5 billion allocation, but the request was not considered in the 2023 Medium-Term Budget Policy Statement.<\/p>\n
\u201cWe did not get what we requested from the Treasury because of the dire situation the Finance Minister painted in the finances,\u201d he said.<\/p>\n
\u201cWe hope probably in the next budget the Treasury will respond positively.\u201d<\/p>\n
Cape Times<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The SABC has recorded nearly R500 million in net losses in six months into the 2023\/24 financial year, Deputy Minister of Communications and Digital Technologies Philly Mapulane said on Tuesday. He revealed this during a briefing by the board and management to the communications and digital technologies portfolio committee on the public broadcasters\u2019 corporate plan. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[8581,3353,15661,366,497],"class_list":["post-201893","post","type-post","status-publish","format-standard","category-politics","tag-losses","tag-months","tag-r464m","tag-records","tag-sabc"],"yoast_head":"\n