Friday, July 8, 2016

SABC's loss-making mess continues, despite SABC boss Hlaudi Motsoeneng saying 'SABC we are profitable' and a 'billion dollar company'.

The loss-making mess of the SABC is continuing with the beleaguered South African public broadcaster that will again announce a loss next month despite SABC boss Hlaudi Motsoeneng who this year numerous times said "SABC we're profitable" and that the SABC is a "billion dollar company".

In August the SABC will announce its 6th annual loss of the past decade.

The SABC's net financial loss will increase beyond R1 billion, up from R860 million. It is in sharp contrast to the controversial chief operating officer (COO) Hlaudi Motsoeneng constantly telling the media that the SABC has "R1 billion for local content", that "SABC is sustainable" and that the SABC is profitable.

Last year the SABC made a loss of R395 million - a loss that is set to rise when the public broadcaster publishes its financial report for the 2015/2016 year next month - while Mbulaheni Maguvhe, chairperson of the gutted SABC board stubbornly maintains that the "SABC is not in crisis".

So bad is the SABC's financialmanagement that last year the public broadcaster received its 5th consecutive qualified audit in 5 years and in 2012/2013 even a disclaimer from the auditor-general (AG).

With ongoing brand and reputational damage, the SABC that burns through R600 million per month, is besieged by now almost daily public protests and sharp criticism over mismanagement and the credibility of the SABC News service.

The broadcaster came in for near universal condemnation for a unilaterally introduced censorship policy of the news visuals of public protests on the SABC airwaves that is now also the subject of a court case, as well as a case at the broadcasting regulator, Icasa.

The SABC's massive loss of hundreds of millions of rand for 2015/2016 will come as Hlaudi Motsoeneng in May announced a 90% local music quota for SABC radio stations, followed by a 80% local content diktat for the SABC's TV stations requiring the production of more local TV programming.

Earlier this year the minister of communications, Faith Muthambi, told parliament's portfolio committee on communications that the SABC will make a profit of R19 million.