‘Technically insolvent’ SABC can't fulfil public broadcasting mandate
The broadcaster says it has suffered a net loss of over R300 million so far in the current financial year.
JOHANNESBURG - The South African Broadcasting Corporation (SABC) says it’s technically insolvent and unable to fulfil its public broadcasting mandate.
It says it has suffered a net loss of over R300 million so far in the current financial year.
The broadcaster says it now has no choice but to restructure the company, partly by instituting retrenchments.
LISTEN: SABC explains why it may retrench 981 employees
Unions have asked the SABC to look at a way to avoid retrenchments.
Over 900 permanent employees and 1,200 freelancers look set to lose their jobs but group CEO Madoda Mxakwe says the company has no choice but to restructure.
WATCH LIVE: SABC briefs media on its financial situation
The SABC’s revenue is currently at R6.6 billion with an expenditure of R7.2 billion.
Its largest expenditure is the wage bill at over R3.1 billion, which is just over 40% overall expenditure.
The broadcaster says it will now implement what it calls a robust turnaround strategy so that it can fulfil its mandate.
Human resource manager Jonathan Thekiso says the SABC will look into last-in-first-out criterion and with emphasis on skills, experience and qualifications.
(Edited by Shimoney Regter)