SABC3: YET ANOTHER BIG SCHEDULE SHAKE-UP

Tuesday, October 4, 2016

SABC's Hlaudi Motsoeneng's payday balloons to R4.19 million as struggling SABC posts yet another (and growing) loss of R411 million.


The SABC boss Hlaudi Motsoeneng who now calls himself "an ordinary employee" has seen his astronomical salary balloon further to a massive R4.19 million, coming as the struggling broadcaster posted yet another loss of R411 million in the same week as top executives jetted off to the luxury Hilton Mauritius Resort and Spa.

The controversial SABC executive who the Public Protector found in her February 2014 report lied said he "should never have been appointed at the SABC" and who implicated him in several instances of maladministration and abuse of power, has now become the best-paid employee at the beleaguered SABC, increasing his salary from R3,78 million to a staggering R4.197 million during the 2015/2016 financial year.

The almost half a million increase comes after Hlaudi Motsoeneng's almost R1 million salary increase during the previous year, out-earning even president Jacob Zuma as the SABC continue to lurch from crisis to crisis, posing yet another and bigger loss and getting its 6th consecutive qualified audit for its annual financial results that paint a dire picture of the SABC’s finances and future.

Included in Hlaudi Motsoeneng's R4.19 million payday is a bonus of R213 000 – up from the previous year – as well as expenses and allowances of R945 000.

While Hlaudi Motsoeneng and acting CEO James Aguma keep saying "the SABC is sustainable", the SABC's cash balance plunged further and fell below the R1 billion threshold, now sitting at an alarming R881 million, as its losses increased from R395 million to R411 million by the end of March.


    2012/2013                    2013/2014                     2014/2015                     2015/2016
Net profit/loss:                  
R330 mil net profit        R358 mil net profit*       R395 million net loss     R411 mill net loss
Cash balance:                     
R1.07 billion                          R1.42 billion               R1.01 billion                          R881 million
Average TV share:             
       53%                                      48.6%                                53%                             48.8%


*Whether the SABC made this/a profit is doubtful since the Auditor-General (AG) issued a disclaimer, citing that the SABC during this period was particularly rife with financial mismanagement, inadequate financial controls and a lack of supporting documentation.


While the SABC spends million to gather SABC TV licence fees, the SABC's shocking financial report reveals that the South African public broadcaster keeps getting less money as collection fees "continue to decrease" with the majority of South Africans who simply don't bother or care to pay for a SABC TV licence.

The SABC more than doubled what it pays in consulting fees – now at a staggering R80 million – while material losses due to fruitless and wasteful expenditure increased from R58 million to R92 million. 


Lap of luxury in Mauritius
Meanwhile the SABC's failed to manage the optics with SABC executives Bessie Tugwana and Nomsa Philiso jetting off to Mauritius for a luxury conference in the same week as the SABC revealed its staggering R411 million loss.

On Tuesday last week, Hlaudi Motsoeneng who was just re-appointed as the SABC's head of corporate affairs was specifically asked at a press conference if he was still going to Mauritius.

Although he's no longer the SABC's chief operating officer (COO) – which is why he was invited to the NexTV CEO 2016 African TV Business leaders summit – Hlaudi Motsoeneng was adamant that he was definitely flying to Mauritius on Wednesday.

He was suddenly replaced by Bessie Tugwana and Nomsa Philiso on the Mauritius TV summit getaway with no explanation from the SABC.

It's not known how much the SABC is paying for the executives' island jaunt where South Africa's minister of communications Faith Muthambi is the keynote speaker on Africa's digitisation and future of TV in Africa.

The 5-star Hilton Mauritius Resort & Spa with luxurious sea-facing rooms describes itself as "the perfect location to mix business and pleasure".