This is the SABC's 8th consecutive, annual financial loss the past decade with the South African Broadcasting Corporation that is once again hovering on the brink of financial collapse and desperate for another government bailout in the form of a R3 billion government guaranteed loan or some other urgently needed cash injection.
So bad is the SABC's financial management that the SABC also received its 8th consecutive qualified audit in 8 years for its 2017/2018 financial year, as well as again a disclaimer from the Auditor-General.
A qualified audit from the Auditor-General (AG) means that it found types of situations which are completely out line with the generally accepted accounting principles - as opposed to an unqualified audit which the SABC is supposed to be getting.
The SABC also again got a disclaimer from the Auditor-General.
A disclaimer of opinion is the worst audit opinion from the Auditor-General and the most disturbing rating, where the auditor says an entity, like the SABC, is unable to provide sufficient supporting documents for its financial statement.
The SABC's latest annual report was presented to South Africa's public broadcaster on Monday with the broadcaster posting revenue of R6.6 billion, but owing creditors over R500 million.
The SABC also listed an eye-watering R5 billion in irregular expenditure but because of a lack of verification it could even be more, with the AG saying it's impossible to confirm the true extent.
The SABC massive loss of R622 million for the financial year ending 31 March, is however less than the R977 million loss of the 2016/2017 financial year.
Kimi Makwetu, auditor-general said in his report included with the SABC's annual report, that the "SABC was commercially insolvent as it was not able to pay its debts as and when they came due".
The SABC's financial statements were once again, as has bee the case for several years in the past, slapped with a disclaimer - the worst possible auditing opinion.
Kimi Makwetu, said he wasn't able to say whether the SABC remains a going concern.
Bongumusa Makhathini, SABC chairperson, says in the annual report that the SABC's financial problems are continuing "and the pattern seems to continue with even greater severity for the year ahead", citing "endemic levels of corruption and maladministration that had been prevalent at the SABC for many years".
"The corporation is still paying the price for years of ineffective leadership, failed governance and prejudicial decision-making. Self-inflicted actions like the arbitrary 90-10 decision [unilaterally enforced by the now-fired former COO Hlaudi Motsoeneng] continue to impact on the SABC’s revenue."
"The corporation sits on a huge and unsustainable cost base built up over time without proper consideration for a workable operating model."
"Our three analogue television channels cannot sustain the impact on commercial schedules from sport in particular. A successful digital migration [from analogue broadcasting] is therefore vital to the public broadcaster’s future in many ways," Bongumusa Makhathini writes.
The SABC in its annual report again raised and placed emphasis on the issue of the SABC that wants to become more commercialised and that now wants to be paid, in addition to the so-called "must carry" regulations, by pay-TV providers like MultiChoice, StarTimes, Deukom and others.
Commercial pay-TV companies in South Africa are forced by the broadcasting regulator, Icasa, to carry the SABC's channels to ensure wider public distribution and access, but don't have to pay for these channels that they must carry.
"The SABC has submitted to Icasa that this regulation was in conflict with the enabling legislation that envisaged 'commercially negotiable terms' being agreed to between the SABC and subscription broadcasters," says Bongumusa Makhathini.
"The SABC 'must carry' channels are some of the most watched channels on pay TV bouquets and therefore the corporation should receive market value for its television content."
The SABC also wants a review of sport rights licensing and public broadcasting regulations by Icasa.
"The regulations should be reviewed in order to promote fair competition for sports rights and prevent unfair sub-licensing and hoarding practices".
