Treasury: SABC, Dept of Communications fail to meet bailout pre-conditions
National Treasury said it has not received any submissions or documentation in compliance with the set of pre-conditions communicated to the department in March.
CAPE TOWN - The National Treasury said the Department of Communications and the South African Broadcasting Corporation (SABC) have failed to meet certain pre-conditions for the public broadcaster’s R3.2 billion bailout from the country’s contingency reserve.
The department and the SABC’s failure to meet certain conditions for a bailout were contained in a letter to the Department of Communications by Treasury director-general Dondo Mogajane.
The letter and a list of conditions, seen by Eyewitness News, stated that the National Treasury to date has not received any submissions or documentation in compliance with the set of pre-conditions communicated to the department in March.
Mogajane said it was important that the department and the SABC comply with the pre-conditions as this would significantly influence the determination of funding for the struggling public broadcaster.
One of these conditions that the National Treasury wanted was for the SABC to appoint a restructuring officer to lead a turnaround strategy at the broadcaster.
Treasury has also tasked the department with compiling a list of non-core assets that would be offloaded and sold.
Mogajane also wanted the SABC to determinate its immediate cash requirements for the next 12 to 18 months.
He said the department remained accountable to Parliament and must report on the progress of achieving the conditions to Parliament’s Standing Committee on Public Accounts.