More time, cash needed to see turnaround strategy success - SABC

As part of its turnaround, the SABC said a major focus area was the review of its operating model and structure to be able to keep up with the shifting competitive landscape.

FILE: SABC CEO Madoda Mxakwe. Picture: Kayleen Morgan/EWN

CAPE TOWN - The South African Broadcasting Corporation (SABC) on Wednesday said it needed about two years to start seeing the results of its turnaround strategy.

The public broadcaster appeared before Parliament’s select committee on Public Enterprises and Communications to brief it on its dire financial situation and human resources matters.

As part of its turnaround, the SABC said a major focus area was the review of its operating model and structure to be able to keep up with the shifting competitive landscape.

The corporation said a concern was its employee costs, which were just over R3 billion a year and added close to 45% of all its expenditure. The SABC also owed about R1.8 billion.

Group CEO Madoda Mxakwe said for any strong strategy, what was really needed was a capital injection for it to be successful.

He said the turnaround was started in July last year.

“Like any solid turnaround strategy would need at least 18 to 24 months, though, you already have those positive green shoots in terms of what we have done in the past 12 months but more time needs to be added, especially the dire need for a financial injection,” Mxakwe said.

The SABC was also investigating the disposal of non-core assets like buildings and vacant land as well as broadcasting assets like channels and stations.