Music royalties collecting agency Sampra files R64 million lawsuit against the SABC over its non-payment of money due to artists.

The South African Music Performance Rights Association (Sampra) has filed a R64 million lawsuit against the embattled South African public broadcaster over the SABC's non-payment of royalties owed to musicians.

The collecting agency filed court papers in the South Gauteng High Court on Tuesday, demanding that the SABC pays the outstanding millions due to musicians for playing their music.

"We served them with summons on Wednesday for failing to pay for the license fees due to us for our artists," says Tiyani Maluleke, Sampra spokesperson.

"The SABC uses over 90% of music belonging to our members but they have never paid any cent towards the licence fees to us for our members for over 10 years while other broadcasters have been paying."

Sampra is trying to collect royalties on behalf of both local and international acts it represents, including artists like the rappers Common, Notorious BIG, Cassper Nyovest, AKA, Kwesta and DJ Euphonic.

"The SABC can confirm that it has been served with combined summons by Sampra. We are unable to comment any further on this matter," says Neo Momodu, SABC spokesperson.

SABC, 'limping from day to day', owes artists millions of rand in unpaid royalties; blames its financial crisis for its failure to pay.

The SABC owes singers and musicians millions of rand in unpaid royalties and more millions in residuals to actors, with the struggling public broadcaster on the brink of financial collapse, blaming its severe money woes for its failure to pay.

The SABC on Wednesday told parliament's Standing Committee on Public Accounts (Scopa) that the SABC "is behind with royalty payments" and owes artists at least R75.4 million.

The SABC owes the Southern African Music Rights Organisation (Samro) R14.5 million, the SA Music Performance Rights Association (Sampra) R52.7 million, the Association of Independent Record Companies (ARIC) R2.8 million, the Composers Authors and Publishers Association (Capasso) R3 million and the Recording Industry of South Africa (Risa) R2.4 million.

The SABC didn't provide any numbers for the outstanding millions it owes actors and writers for residuals for the rebroadcasts and repeats of TV shows like Sgudi 'Snaysi on SABC1 and the library shows broadcast on its SABC Encore channel on MultiChoice's DStv satellite pay-TV platform.

The SABC told parliament that the last time it paid any royalties to artists was in December 2016 but didn't specify an amount, and blames the public broadcaster's cash-strapped status.

The SABC also failed to pay all artists, winners and contributors for the 2017 Metro FM Awards held months ago.

Bessie Tugwana, acting COO, blamed the SABC's non-payment of artists on a "struggle to get verified documentation so we could pay" and the SABC's "cash-flow problem". She told parliament that everyone will be paid at the end of May.

A year ago, in May 2016, SABC spokesperson Kaizer Kganyago announced that the SABC will immediately increase the royalty tariff paid to artists for music content played on the SABC's 18 radio stations and TV channels from 3.2% to 4% - but nothing came of that, with the SABC unable to even pay the 3.2%.

The SABC referring to its situation as "dire" and saying it's "limping from day to day", told parliament on Wednesday that the "90% local content" decree for local music airplay on radio and "80% local content" on SABC TV ordered by the former chief operating officer (COO) Hlaudi Motsoeneng has destroyed the public broadcaster and is threatening the very existence of the SABC that doesn't have the money to pay for it.

New SABC interim deputy chairperson Mathatha Tshedu revealed that the SABC blew an additional R72 million on new local content to replace other local content no longer deemed suitable, for the 90% local content policy.

"We are looking at taking back detrimental consequences of some decisions. We are looking at the 90% which saw both the television and radio losing millions. It's implementation has to take cognisance of the fact that it mustn't threaten the existence of the SABC itself, which is what it is doing."

The SABC revealed that it wasted another R74 million in TV content it bought but never showed, marked as fruitless and wasteful expenditure.

The SABC, now struggling to pay staff and producers, further spent hundreds of millions of rand on irregular content buying, for instance R63 million in 2016/17 and R240 million in 2015/16.

Already owing them millions of rand in outstanding payments, last week the SABC told South African producers going forward that it only wants to pay them 25% monthly of the money they're due although they're expected to keep delivering 100% of the content the SABC requires to keep its TV channels on the air.

Communications minister Ayanda Dlodlo told parliament that "the dire state of the SABC wasn't brought to us voluntarily by executives. We had to dig".

Ayanda Dlodlo said the SABC's initial bailout request to treasury was inadequate. "It was like putting an Elastoplast on a wound instead of treating the wound".

After getting a bailout in the form of a R1.47 billion government-guaranteed Nedbank loan in 2009 during its previous bailout when the SABC teetered on the brink of collapse eight years ago, it's not yet known what amount in another government-guaranteed loan the SABC is seeking this time in its next bailout.

Loss-making SABC to increase royalty tariff paid to South African artists for needletime on its radio stations and TV channels from 3.2% to 4%.

The loss-making SABC on Thursday announced that the South African public broadcaster will increase the royalty tariff paid to artists for music content played on the SABC's 18 radio stations and TV channels from 3.2% to 4%.

The announcement of an increase in pay-outs is great news for local established and new South African musicians who will benefit from a bigger payout every time their music is played on public South African airwaves.


The news comes on the back of the SABC's recent decree by its chief operating officer (COO) Hlaudi Motsoeneng of a 90% local music content quota across all 18 of its radio stations that was widely welcomed by South African artists.

The royalty tariff will increase from 3.2% to 4% for artists registered with the Southern African Music Rights Organisation (SAMRO), South African Music Performance Rights Association (SAPRA), Independent Music Performance Rights Association (IMPRA) and the Association of Independent Record Companies (ARIC).

Still problematic however is that besides these four organisations, there's a lot of South African artists who are not registered with any of these bodies.

Also still troubling, is that many South African artists are still waiting on millions of rands in royalty back payments that's not been made.

South African artists also complain about problems regarding effective monitoring and reporting of needletime (which in turn negatively impacts on subsequent payouts).

The increased royalty tariff means more money for South African musicians' pocket but also more money that will have to be paid by the SABC.

The public broadcaster made a loss of R395 million in its latest reported financial year, and recently dramatically announced that it wants to start four new "language-based" TV channels, each of which will cost around R500 million to set up and operate.

Hlaudi Motsoeneng said the SABC is going to pay R1 billion to especially new and emerging local TV producers to create TV content for these channels but didn't specify where the astronomical amount of money is coming from.

"This move [to increase the royalty tariff] is meant to stimulate the music industry, through creating jobs and unearthing new talent. The SABC also wants to restore the dignity of creatives to move away from a situation of creatives in the music industry dying as paupers," says Hlaudi Motsoeneng.

"We're thrilled as SAMPRA by the bold decision taken by the SABC to beat the 3% rate set by the courts and up it to 4%," says Sean Watson, SAMPRA chairperson.

"We are very excited and looking forward to artists' lives changing. We have waited for 30 years for this," says Arthur Mafokate, SAMRO representative.

"On behalf of IMPRA and AIRCO, we are embracing and remain committed and grateful of the announcement from the SABC about 4% needle time payments to us as record companies," says Dodo Monamedi, chairperson of AIRCO and IMPRA.

Besides the increased payout the SABC is also setting money aside to pay a once-off honorarium in July to local South African musicians like Babsy Mlangeni, Steve Kekana and Letta Mbuli.