Free Newsletter
 Subscribe Now
 BR Blog

 HOME
Treasury approves a R1 billion SABC bailout  Comments
November 24, 2009


The SABC will receive a bailout of over R1 billion, Communications Minister Siphiwe Nyanda said on Tuesday.

"We hope that the financial injection by government will help the SABC meet its urgent needs, such as payment of outstanding debts and other matters of priority," Nyanda said in a statement.

Finance Minister Pravin Gordhan approved the cash-strapped public broadcaster's application for a government guarantee of R1.473 billion.

According to the Treasury, a "draw-down" of R1 billion would be made available immediately.

"Through newly introduced tight control measures that include regular management reports, the shareholder will ensure that the money given to the public broadcaster is utilised properly and to settle urgent outstanding financial obligations," the statement read.

The remaining R473 million would be subject to the broadcaster presenting a plan with clear revenue targets and cost cutting measures, to enable effective oversight and monitoring.

Nyanda thanked Gordhan and the SABC board for their work.

"The SABC is a national asset that needs to be guarded with jealousy by those put in charge of looking after it on behalf of all South Africans."


Earlier this month, Parliament's communications portfolio committee was told by the SABC interim board that the ailing broadcaster would begin turning a profit by 2012. The broadcaster planned to repay all its debts by the end of the 2014 financial year.

It was granted R200 million by the Treasury in October. The SABC would get this between November and March next year and pay for commissioned local content.

Its application for the five-year government guarantee of R1.4 billion would "allow the corporation to borrow money from institutions".

The committee heard that the corporation's losses stood at R910 million, but this figure was expected to start dropping.

The SABC had also run an overdraft of between R580 million and R600 million since March, the start of the current financial year.

Cost-cutting measures and a turnaround strategy implemented by the interim board in the past four-and-a-half months had saved the corporation about R65 million. - Sapa
BOOKMARK THIS STORY

Social bookmarking allows users to save and categorise a personal collection of bookmarks and share them with others. This is different to using your own browser bookmarks which are available using the menus within your web browser.

Use the links below to share this article on the social bookmarking site of your choice.

Read more about social bookmarking at Wikipedia - Social Bookmarking

Showing page 1 of 1 comment pages, 8 total comments
11 Weeks ago Anonymous wrote :
choice is an illusion created by those who have power and propergander there most usefull tool there is corruption at every level it`s become so blatent now just another story of the middle man /working class getting screwed
11 Weeks ago Anonymous wrote :
never thought the SABC was a private entity in the first place......but still tend to agree with the cronies bit....nevertheless government seems to have a habit of hiring the incorrect people for the job then the institutions have to pay a really large some of money to get rid of them.
11 Weeks ago Anonymous wrote :
As much as this annoys many people, as an actor I can say that this might be a step in the right direction to help employ people like me. Actors need work, so think about that...
11 Weeks ago Simon wrote :
So the SABC board is fired, then replaced with a bunch of the ANC's cronies who have no clue what to do then the same company has to be bailed out! No doubt those board members will be getting hefty bonuses this year for a job well done... Hold on doesn't this make the SABC a state entity now...?Wow that was subtle of them! And the propaganda machine marches forward!
11 Weeks ago Max wrote :
And the taxpayer will have to fork it out again.
11 Weeks ago Anonymous wrote :
And another R1b of tax-payers money goes down the tubes - for what? This is just obscene - how many houses could the Government have built with this money, how many jobs could they have created? But we absolutely cannot do without the ruling parties mouthpiece, can we? AWA- Africa Wins Again. Viva Julius, Viva Robert Mugabe!!! And yes, I probably am a racist for speaking my mind
11 Weeks ago George wrote :
The only reason government if using our tax money to bail out the SABC is because they need the SABC for their propaganda machine when elections come around. The SABC is headed up by ANC appointed people and will tow the line otherwise the ANC fires them. It would not be good business for the ANC not to use our hard earned money to bail out one of their ASSETS. It is really frustrating to see but then we are so used to our money being mismanaged on a daily basis. There is no concern for the citizens in this country, just ways of ensuring the ANC protects their positions.
11 Weeks ago Marie Cape Town wrote :
This is an absolute nightmare, why should MY tax money go to incompetent SABC Management as a bail-out!!! The government STEALS MY money every months to pay for their over-spending and helping their buddies out who should actually be prosecuted!! FURIOUS TAX payer
HAVE YOUR SAY
Please enter your comment into the text box below.
Note: all comments are moderated (see our moderation policy) and may take some time to display, or may not appear at all.
If you would like to use an alias, please type it below. If you do not enter an alias you comment under a Anonymous byline.
Type your email address below - your comment will not be accepted without it. This is required as part of our moderation guidelines, but your address will not be published or distributed.
Lastly, to help fight spam, enter the letters in the image below as you see them.

     

BUSINESS SERVICES
Awesome UK Lotto's
Business Directory
Car Insurance
Car Insurance for Women
City Guide
Insurance Quote
Life Insurance
Life Insurance for Women
Maps & Direction
Medical Aid
Meetings Africa
Mobile Business Directory
Online Shopping
Personal Loans
Play Huge Lottos
Property Search
Travel Specials

MOBILE SERVICES
 Get Business Headlines & Indicators
 on your phone - dial *120*IOL*5#
 Click here to find out more (SA only)



News


Markets


Technology News


Company News


International