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Wednesday, 28 August 2019 17:12

SABC is technically insolvent,the financial situation has since worsened.

The SABC is technically insolvent and is struggling to honour payments to the service providers.

SABC Group Chief Financial Officer Yolande van Biljon said that the SABC’s financial position has since worsened and that it ended the previous financial year with a cash balance of only R72 million.

“There are instances where we are unable to honour payments and even unable to adhere to contractual obligations, which means we often need to renegotiate because we have been unable to meet the requirements."

"We are also under tremendous strain of being factually insolvent as a result of our liquidity issues, cash is depleted."

"A number of reasons for the loss are a combination of cost saving, cash conservation, amongst others and of course reduced revenue,” she explained.

She further said they hope that their turnaround strategy will yield results in years to come and they will also be entering into payments arrangements with major suppliers and service providers.