Monday, November 13, 2017

SABC says it 'still face a serious crisis'; shocks parliament as SABC's spiraling debt continues to balloon to over R600 million during first quarter.

The SABC shocked in its first quarter report-back to South Africa's parliament and revealed that its debt continues to skyrocket and has now grown to over R600 million.

The SABC's growing debt problem is causing other big problems, like the South African public broadcaster that's unable to pay outstanding debt owed to creditors on time. The SABC said its failed in keeping to a 60-days payment schedule.

Febe Potgieter-Gqubule‚ SABC board deputy chairperson told parliament's portfolio committee on communications that the SABC "still face a serious crisis".

The cash-strapped SABC is waiting on a possible R3 billion bailout from the South African government in the form of a government guaranteed bank loan.

Without the government providing a guarantee that it will repay a billion rand loan if the SABC defaults, the SABC that grew its annual loss to R977 million at end-September, on its own can't get any loans.

Nomsa Philiso, acting SABC CEO told parliament that the first quarter of the SABC's current financial year was extremely difficult.

"It was a difficult quarter for the SABC and its performance. If you remember that's when we hit the financial iceberg in terms of our crisis. As at the end of June we were owing our creditors R597 million which has subsequently grown over the months."

"On the positive side we were still able to deliver programming and also to meet our mandate requirements‚" said Nomsa Philiso.
Febe Potgieter-Gqubule told parliament that the new permanent SABC board is "very mindful that we are inheriting a organisation in crisis on a whole range of different levels".

SABC revenue for the first quarter stood at R1.57 billion, falling short of the target of R1.77 billion.