Auditor General: SABC’s financial health concerning

The AG has told Parliament the broadcaster is in a difficult position - partly because of unpaid TV licences.

FILE: The SABC (South African Broadcasting Corporation) headquarters in Johannesburg. Picture: AFP

JOHANNESBURG - The Auditor General (AG)'s office has told Parliament the South African Broadcasting Corporation's (SABC) financial health is a concern, adding the broadcaster is in a difficult position - partly because of unpaid TV licences.

The public broadcaster recorded a R400 million loss during the 2014/2015 financial year.

The SABC's annual report also shows R18.8 million in fruitless and wasteful expenditure.

The AG's Alice Muller briefed Members of Parliament on the broadcaster's audit outcomes earlier today.

"I have assessed the SABC as concerning primarily because of their license fees, which they don't recover. They would be in a much more healthy position if they recovered all the license fees that are due to them, as well as the losses that were made last year."

Last month, the SABC was criticised for over Chief Operations Officer Hlaudi Motsoeneng's latest salary increase of almost R1 million, despite the Public Protector's findings that disciplinary action should be taken against him.

The public broadcaster's annual report shows Motsoeneng received R3.7 million, up from R2.8 million.

Motsoeneng has since gone on voluntary leave, after the board summoned him to a disciplinary hearing at the end of the month.

He has been charged with abuse of power, misconduct and gross dishonesty.