The SABC will receive a bailout of R3.2b from National Treasury, Communications Minister Stella Ndabeni-Abrahams announced in a briefing in Pretoria .
The minister said R2.1b would be transferred on Monday while the remaining R1.1b will be transferred once the SABC has met all the conditions.
One of the requirements the Treasury wanted from the cash-strapped public broadcaster was the appointment of a restructuring officer to lead a turnaround strategy.
Ndabeni-Abrahams added that the SABC plays “an integral role to inform, educate and entertain the public,” and that her department was committed to helping the broadcaster “effectively discharge its mandate while being a commercially viable”.
The SABC’s annual report tabled in parliament on Monday shows that the broadcaster incurred irregular expenditure of R5.2bn, up from R4.9bn the previous year.
The five preconditions that have been fully met by the SABC are:
- Determining immediate cash requirements supported by detailed cash flow projections for the next 12-18 months;
- Conducting a thorough investigation into what caused the financial collapse of the SABC and why the previous turnaround plans have not been implemented;
- Providing an update of how the entity is dealing with people implicated in an investigation report;
- Developing a turnaround plan incorporating measures to prevent the re-occurence of the identified factors; and
- Submitting a list of identified initiatives for revenue enhancement and cost-cutting initiatives.
SABC chair Bongumusa Makhathini said the news was “exciting” and that the broadcaster was waiting for this money to fund its turnaround strategy.