By Lehlohonolo Lehana.
The South African Broadcasting Corporation (SABC) presented its annual report and financial statements for the financial year 2021/22 before the Standing Committee on Public Accounts (SCOPA).
Chief Executive Officer, Madoda Mxakwe says the SABC has reduced irregular expenditure.
“We have seen improvement that IR – 2017, we moved from R700m at end of financial year 2022 we are at R91m, same for fruitless and wasteful expenditure, there has been progressive improvements.”
The SABC, which clocked up irregular, wasteful and fruitless expenditure of over R2 billion for the 2020/2021 financial year according to the Auditor-General, said that its finances were generally on the mend after suffering billions in losses in previous years.
Mxakwe told MPs that despite operating in a difficult environment, they had managed to reduce net losses.
“The previous fiscal, we had over R500 million. Now we are actually standing at R201 million, which is a progressive reduction in terms of net losses, indicating the degree to which we are now moving even closer to breaking even and being profitable,” Mxakwe said.
He said the reason for the net loss of R200 million was because of the acquisition of sports rights for the 2024 Paris Olympic Games at just over R100 million.
SABC will have to broadcast at least 200 hours of live or same day coverage of each edition of the Olympic Games and daily highlights of the Winter Games.
Chief Financial Officer Yolanda van Biljon says they are working toward breaking even.
In the year under review, the Auditor-General raised concerns about the broadcaster’s ability to meet its financial obligations.
Van Biljon says it is a work in progress.
“Going concern today is informed by a few themes. Revenue generation, expenditure management and cash flow management or working capital management. All getting particular attention. Also connected with the turn-around comment the AG made, is the focus on revenue generation.”
Watch Live in the video below:
Video Courtesy of Parliament.