Thursday, January 19, 2023

SABC: Boardless for 3 months and counting as loss-making public broadcaster's revenue generating plans slip away.


by Thinus Ferreira

This week marks an unprecedented three months - and counting - that the unstable and cash-strapped SABC has been without any board, as the doors are closing on some new revenue-generating plans that the South African public broadcaster's executives came up with to try and stem losses but which all require board approval before they can be implemented. 

The SABC has been lurching along boardless since mid-October 2022 - the fault of politicians and the tardiness of parliament's portfolio committee on communications.

The ANC-controlled parliamentary committee, despite multiple prior warnings in 2022 that the term of the then SABC board was coming to an end, started the process too late to advertise, do interviews and compile a shortlist of candidates to be rubberstamped by president Cyril Ramaphosa.

Meanwhile the time in Cyril Ramaphosa's diary in late-2022 and early-2023 got consumed by the ANC's 55th national conference in December 2022 and to secure his second term as president of the ANC, as well as South Africa's dramatically worsening electricity supply crisis due to a crippled Eskom.

Last week Vincent Magwenya, presidency spokesperson, said that from the president's side there "is an appreciation of the urgency of finalising the process. There was a slight administration and logistical delay towards the end of last year" and that "an announcement is imminent and the process is being finalised".

As a result, a rudderless SABC which is once again heading for yet another loss-making year and is projecting to announce a R608 million loss for its 2022/2023 financial year, has been unable to get board sign-off on some new revenue-generating plans.

These plans - although not able to put the SABC back in the green - would have shaved some millions off of the latest projected loss. Now the SABC has already lost at least one quarter of its latest financial year unable to make more money. 

Ian Plaatjes, SABC COO, made it clear to parliament's portfolio committee that some of these plans are stalling because they specifically require SABC board approval.

Plans like new external sales deals whereby some airtime sales for timeslots on SABC radio and TV are outsourced to third-party companies, could for instance net the SABC R30 million in additional income but can't yet be put into operation since there isn't a board to sign off on these plans.


'The SABC needs a board now'
"The SABC needs a board now," says the SOS: Support Public Broadcasting Coalition pressure group.

"It's now three months since the term of office of the previous SABC board expired on 15 October 2022. The litany of undue delays in appointing the board continues to hamper the institution's efficiency and strategic direction," says Uyanda Siyotula, SOS national coordinator.

"The SOS Coalition is concerned that a significant public institution has been without a board for three months – this has not happened before."

"There are critical issues that need board intervention and approval that are currently on hold."

The SOS Coalition says it is "disappointed by the lackadaisical attitude of the National Assembly in sending the recommended names to the president some 14 days after they were finalised with no explanation as to the reason for the delay".

"The decision taken at the ANC conference in December to replace TV licenses with a household broadcasting levy needs the SABC to strategise on the most adequate implementation process and resource allocation to ensure a swift transition and is likely to need board intervention."

"Further, the looming Analogue Switch Off (ASO) date of 31 March 2023, recently announced by the minister of communications and digital technologies, Khumbudzo Ntshavheni, will require a new strategic direction for the institution as it stands to lose part of the 68% audience from the remaining four provinces that still distribute analogue SABC television signals."

The SOS Coalition says that "the minister has set 27 January as the date for interested parties to make submissions on this issue. How is the board supposed to be appointed, inducted and be able to make a comprehensive submission on the biggest threat to its financial viability that it has ever faced?"

About the shortlisted candidates whose names were put forward to comprise the new SABC board, the SOS Coalition says that Dinkwanyane Mohuba should not be appointed until such time as the Supreme Court of Appeal has cleared his name of allegations relating to a fraudulent qualification.

"Nomvuyiso Batyi should be appointed to the SABC board only on condition that she immediately resigns as the CEO of the Association of Communications and Technology. Mpho Tsedu should be appointed to the SABC board only on condition that he immediately resigns as a special advisor to the DCDT and its ministry".