Mxakwe: SABC will be factually insolvent by end of March if nothing done

The SABC expects to make a net loss of R568 million this year. This is R281 million more than forecast in its budget.

FILE: The SABC headquarters in Auckland Park. Picture: SABC

CAPE TOWN - The SABC’s financial crisis is now so acute that the public broadcaster will be "factually insolvent" by the end of March if nothing is done, Parliament has been told.

The SABC is briefing Parliament’s communications committee on its turnaround strategy.

Chief executive officer Madoda Mxakwe says the SABC’s financial situation is dire.

"So chairperson, the SABC's projected figures show factual insolvency by the end of March if nothing is done, thus the work that is being engaged on with the DOC [Department of Communication] from a funding point of view."

The SABC expects to make a net loss of R568 million this year. This is R281 million more than forecast in its budget.

Meanwhile, the committee has decided that Rubben Mohlaloga be removed as Icasa chairperson and councillor with immediate effect.

Mohlaloga was convicted of fraud and money laundering and sentenced to 20 years. He was granted leave to appeal his sentence.

The National Assembly must now approve the committee’s recommendation.