MultiChoice to assess its corporate governance after corruption claims

MultiChoice says it will assess whether there have been any corporate governance failures and take action where necessary.

The MultiChoice offices in Randburg, Johannesburg. Picture: multichoice.co.za

JOHANNESBURG - MultiChoice says it's audit and risk committee will be assessing whether there’s been any corporate governance failures at the company following corruption allegations.

The Democratic Alliance (DA) revealed this week that minutes of an SABC board meeting show that MultiChoice sought to pay the public broadcaster R100 million for its 24-hour news channel in exchange for its political influence over digital migration.

The party says this also supports allegations that MultiChoice paid former Gupta-owned ANN7 millions of rands in exchange for similar influence over government's position on set-top boxes.

MultiChoice says allegations that it entered into an irregular relationship with ANN7 has negatively impacted on the reputation of the company.

Minutes of the Meeting Betweenthe Board and Multichoice 6 June 2013 by Primedia Broadcasting on Scribd

It has therefore instructed its audit committee to assess whether the total amount paid to ANN7 is comparable to payments made for other locally-produced channels with due consideration being given to the estimated costs of running a 24-hour news channel.

While MultiChoice has addressed allegations about ANN7, it hasn't responded to the latest reports about SABC being paid for political influence.

However, MultiChoice says it will assess whether there have been any corporate governance failures and take action where necessary.

(Edited by Shimoney Regter)