Sunday Times reported that the SABC projected a R2 billion loss due to Covid-19-related content material, and that it can be approaching Parliament for an extra bailout.
The South African Broadcasting Corporation (SABC) has rejected claims made by the Sunday Times that the broadcaster has as soon as once more cited income shortfalls.
In the article, Sunday Times reported that the SABC projected a R2 billion loss due to Covid-19-related content material, usually broadcast in peak viewing instances. Board members of the broadcaster instructed the publication this meant a big lower in promoting income.
It additional reported that the SABC would ask for a bailout earlier than Parliament’s portfolio committee on communications and digital know-how on Monday.
“This shouldn’t be true,” SABC appearing spokesperson Mmoni Seapolelo mentioned.
“The SABC has not requested any extra funding, and has no assembly scheduled for tomorrow with the Portfolio Committee on this matter.
“In reality, the SABC will be presenting its 2020/2021 Corporate Plan to the Portfolio committee on Wednesday,” Seapolelo added.
The SABC admitted that promoting income had been affected throughout the media business because of the present pandemic, leading to many media homes cost-cutting mechanisms, however insisted the income shortfall figures and forecasted losses quoted by the Sunday Times are “inaccurate”.
The article cited a lack of R282 million because of the broadcasting of Covid-19-related content material, and a predicted lack of R2.5 billion over the following eight moths.
“The appropriate forecasted numbers have been submitted to the Shareholder and will be offered to the portfolio Committee sooner or later,” Seapolelo defined.
The broadcaster made no point out, nonetheless, of the Sunday Times’ allegations that the SABC has been attempting to renegotiate beforehand agreed upon 6% worker wage hikes.
The article mentioned the nationwide broadcaster had tried to interact unions in discussions, however because of the legally binding nature of the prior settlement, a part of a three-year wage settlement settlement relationship again to 2018, the SABC’s recommendations have been rejected.
The SABC did nonetheless guarantee it had instituted measures “to mitigate the affect of the pandemic on its operations.”
Last yr, the broadcaster obtained a lifeline from authorities, within the type of a R3.2 billion bailout.
The SABC misplaced billions by gross mismanagement underneath former COO Hlaudi Motsoeneng, with funds anticipated to have been used for infrastructure upkeep, procuring “compelling content material” to attract promoting income and meet viewers wants, and settle its R1.6 billion debt.
Under Motsoeneng, the SABC mentioned it incurred irregular expenditure of R5.2 billion.
“Considering the above, the SABC wish to state categorically that there isn’t a software for any extra bailout from Treasury.
“Since it obtained its bailout allocation from Treasury, the SABC has restored a wholesome working capital cycle aligned with the cashflow forecasting fashions,” Seapolelo mentioned.
(Compiled by Nica Richards)
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live at 2020-05-11 07:42:49