Auditor General says SABC should be collecting 6 times what it is from TV licence fees

CAPE TOWN -  As the public broadcaster continues to teeter on the brink of financial collapse, the Auditor General (AG) says the SABC should be collecting at least six times what it currently is in licence fees.

While it may not be enough to completely sustain its operations, the AG says the public broadcaster could rake in more than four billion rand if all law-abiding citizens paid up.

The office has on Tuesday told Parliament that despite a R3.2 billion bailout in 2019, it’s not seen any significant progress in improving the SABC’s financial position.

Despite going from a disclaimer audit opinion to unqualified with findings over the past two financial years, the AG says it’s still concerning that the SABC continues to repeat its bad financial habits, including irregular, fruitless and wasteful expenditure.

Consequence management is also not being fully implemented.

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Auditor Nathan Lawnet has told Parliament’s Standing Committee on Public Accounts (SCOPA) the broadcaster’s going concern status is still questionable.

"We do take note that creditors’ balance is significantly more than the cash that they have in their bank account - R1.6 billion vs the R400 million that they have."

Lawnet says the broadcaster urgently needs to rethink its licence fee collecting plan.

"The R700 million is about what they are recovering and what is being paid by the public. So, from that point of view, it seems reasonable. But obviously it’s nowhere near enough to sustain what they actually need in order to do what’s required of them."

A bill to address the broadcaster’s revenue shortcomings has been in limbo since last year.

The Communications Minister, Solly Malatsi, is still in a battle with Parliament to withdraw the legislation, saying he doesn’t believe it will address the issues.