Fin24

SABC seeks easier loan guarantee terms

2012-02-29 12:15

Cape Town - The South African Broadcasting Corporation has asked the government to relax the stringent conditions attached to its R1.4bn loan guarantee, The Times reported on Wednesday.

This emerged in parliament on Tuesday during a briefing on the SABC's performance against the conditions of the government guarantee.

The troubled public broadcaster got a shot in the arm from the Treasury when it faced a cash crisis in 2009 after Finance Minister Pravin Gordhan approved its application for a R1.47bn loan guarantee.

Among the stringent performance-based conditions put in place was that the SABC raise advertising revenue by R535m and sponsorship revenue by R128m.

The SABC was also instructed to trim its R1.5bn salary bill and increase net profits. Although some of the conditions were met, the SABC failed to cut the salary bill and raise revenue.

A task team comprising high-ranking officials from the department of communications, the Treasury, and the SABC told the portfolio committee on ommunications that the broadcaster was projecting a net loss of R92m for the financial year ending in March.

The team also reported that the payments of salaries and other employee benefits would cost R114m more than was budgeted for this year, The Times reported.

The Sowetan reported that the SABC's top management had told the committee it had submitted a "draft proposal for the amendment of the government targets" to the National Treasury because the SABC was beginning to turn the corner.

Acting chief financial officer Lerato Nage could not dislcose details of the "draft proposal" as it would be considered by the Treasury's guarantee certification committee on March 13.

Employing an analogy of how banks deal with financially weak companies, SABC board member Desmond Golding said some of the conditions were proving to be too stringent and inhibitive as they had been agreed to at the time when the SABC was just not able to pay for anything on its own.

"We are not saying that we are running from those particular terms and conditions. But we are saying that given our financial position, we can in fact negotiate better," the Sowetan reported Golding as saying.

 

Comments
  • Sargon - 2012-02-29 12:28

    If this were a private company their buildings would be for rent and the liquidators selling every last pen and pencil.

  • Wimpie.Haefele - 2012-02-29 12:35

    Privatise

  • SarelJBotha - 2012-02-29 12:39

    Bugger them, they have to abide by these conditions. It is afterall they themselves who created this mess. Cut their salaries by 50% and give them bonusses only for top performance. That will be justice for the taxpayer.

      roberta.keeling - 2012-02-29 13:17

      No bonuses at all I say. They get paid to do a job, and it is expected that you do that job to the best of your ability. Why should they then get bonuses, especially in view of the fact that the administration in toto is in a complete mess!

  • Treacle - 2012-02-29 12:52

    another pathetic result of bee (black entitlement enrichment)..never you mind lerato uncle pravin will bail out the sabc with the hard-working taxpayer's money AGAIN! so, you can carry on drinking moet champagne at your functions and enjoy ridiculously high salaries, drive big black german cars and host million rand parties..

  • Ze Don - 2012-02-29 13:05

    I've got a better idea: Remove the guarantee totally & make this propaganda spewing monstrosity sink or swim on it's own!

  • Christopher - 2012-02-29 13:28

    Close down the SABC!!They have the most rubbish shows and they are the most pathetic broadcasting company to deal with!! A draft proposal,hahaha..thats another word for meetings and more meetings to talk about when next they going to have another meeting...

      Christopher - 2012-02-29 14:41

      They also steal ideas from producers pitching for tenders to broadcast quality shows.They tell them The show will not fit into their broadcasting schedule, and low and behold 6 months down the line they have the exact same show with people that have not a clue how to produce. It lasts for 3 months as they are clueless in the knowledge of how TV works...They are a literally a bunch of thieves in more ways than one!!

  • Den - 2012-02-29 13:39

    to many lazy bee fat cats doing nothing

  • Mashudu - 2012-02-29 13:45

    SABC is Operated by unqualified people, that's why it is in this situation.

  • odupreez - 2012-02-29 14:55

    The time has come (the walrus said) to shut down the SABC , SA Airways, Railways (thanks Mrs. Ramos for your contribution), Escom (Alex Erwin started the rot), Government Hospitals, Government Schools they are a drain on the economy, we can not afford these luxuries any more. Privatise !!, the Government are incapable

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