The SABC CAN BORROW R1,473 BILLION!
That's right billion with a ''b''.
Government has just approved the SABC's application for a government guarantee for R1,473 billion.
In normal language: What it means is that the debt ridden, cash strapped and mismanaged SABC can go to financial institutions, like banks, and borrow R1,473 billion. The government (meaning TAX PAYERS) guarantee those institutions that they will get their money back should the SABC default and not be able to make good on this R1,473 billion that it borrows.
R1 billion will be available IMMEDIATELY. For the remaining R473 million, the SABC will have to provide a detailed ''project plan'' to show show it's spending the money, has allocated it, what the revenue targets are, as well as cost cutting measures.
The new board of the SABC who will take pu their duties from next month, will have to sign, what will be called a Shareholder's Compact, signed as well as by the minister of communications, Siphiwe Nyanda, within 3 months of their appointment, detailing how they will fascilitate the monitoring of where all of this money is going, and how it's begin used.
Irene Charnley, the chairperson of the interim board of the SABC says ''the government guarantee - together with the October approval in the medium term budget of an additional R200 million will enable the SABC to begin the turnaround to develop a vibrant and viable public broadcasting service, responsive to the needs of all South Africans.''
The SABC made a loss of R900 million for the financial year that ended March this year.
''The application by the SABC is aimed at both paying back creditors and implementing a turnaround strategy,'' says Irene. ''The interim board has started the process of identifying cost cutting measures and putting in place governance systems to guard against wasteful expenditure.''
