SABC may be at risk of becoming technically insolvent

Parliament’s inquiry into the SABC’s board says it noted evidence about its financial management, sustainability & funding model.

Picture: Supplied.

CAPE TOWN – The South African Broadcasting Corporation (SABC) may be at risk of becoming technically insolvent.

That’s one of the findings of Parliament’s inquiry into the public broadcaster’s board.

The ad-hoc committee in charge of the probe, adopted its draft report yesterday, with all parties except for the Democratic Alliance (DA) endorsing it.

The DA objected to the exclusion from the draft report of the inquiry’s recommendations.

The committee will draw up its recommendations once responses from witnesses and implicated parties have been received.

The draft’s findings warn that the SABC faces a possible financial crisis.

It also notes with concern evidence before the inquiry about its financial management and sustainability and its funding model.

The report refers to a management report sent by the Auditor General’s office to the SABC in which concerns were raised about the broadcaster’s viability as a going concern.

Acting Group Chief Executive Officer James Aguma will, like other affected parties, have two weeks to submit responses on behalf of the SABC to the committee.

The committee reconvenes on 14 February to consider responses and finalise its recommendations.

Its final report is due to go before the National Assembly at the end of next month.