Share

We have to cut costs or the SABC may collapse, says CEO as almost 1000 jobs on the line

accreditation

SABC CEO Madoda Mxakwe says that the public broadcaster's top management cannot let the SABC collapse due to its poor finances. 

Mxakwe was speaking about proposed retrenchments, cost cutting measures and the SABC’s financial situation at its Auckland Park headquarters in Johannesburg.

“As the executives, we are committed to ensuring that we turn around the SABC … do we do what is right, or do we let the SABC collapse?”

Mxakwe said the public broadcaster is "technically insolvent" and that ongoing cost cutting measures are not enough to put it back on a sound financial footing. 

"The SABC is technically insolvent ... we are not able to fulfil out financial obligations. If we were a public company we would have been recapitalised," he said. "The threat of commercial insolvency is increasing significantly."

The public broadcaster has recorded R3.2bn in revenue in the year to date, against expenditure of R3.5bn. The net loss in the year to date is R323m.  

On Monday the cash-strapped public broadcaster said that 981 employees may possibly be retrenched as a result of a restructuring to save costs, and it had issued notices to all staff informing them of its intention to proceed with Section 189 of the Labour Relations Act, which governs retrenchments. Out of its pool of 2400 freelancers, 1200 may be affected. 

The group's total permanent staff complement is 3 376. Of these 495 are in management. 

Cost savings 

"This exercise should result in a cost saving of approximately R440 million per annum, even at this preliminary stage. This amount excludes the projected cost savings from the planned reduction of freelancers," the SABC said in an earlier statement.

The public broadcaster said on Wednesday that it had submitted documentation to the Commission for Conciliation, Mediation and Arbitration for the appointment of a facilitator to oversee the Section 189 process.  

The group's Chief Operating Officer Chris Maroleng said that the SABC's turnaround plan was very simple; "it tries to maximise efficiencies".

He said that top management understood that the cost cutting measures had a direct impact on the people in the organisation. "We don’t take this lightly.”

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.91
+0.1%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.13
+0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders