SABC's Debt to Sentech Balloons to Staggering R1.8 Billion as Signal Distributor Warns 'Situation is Unsustainable'

by Thinus Ferreira

R1 billion. Then R1.5 billion. Then R1.6 billion, R1.7 billion and now the beleaguered and underpaying South Africa public broadcaster - at risk of getting its TV and radio signals cut - owes the parastatal signal distributor Sentech a whopping R1.8 billion.

The financially struggling SABC is now dragging down and crippling another government-run company, Sentech warns.

So far, SABC CEO Nomsa Chabeli, South Africa's minister of communications and digital technologies Solly Malatsi from the Democratic Alliance (DA) political party, and the South African government's National Treasury, have all been kicking the debt can down the road.

After many months of a very glaring and ever-compounding existential problem, nobody has come up with any sustainable plan to deal with the broadcaster's runaway debt owed to Sentech.

Instead of paying it off or having any workable plan, the SABC's massive Sentech debt keeps growing month after month.

Tebogo Leshope, Sentech CEO, told parliament this past week that the SABC's gigantic debt, which it is simply not paying off and that keeps growing, is busy destroying Sentech financially.

"The debt today is sitting at R1.8 billion and this emanates from the SABC's short payments that started in 2020. The shortfalls are ongoing."

"Sentech is under serious financial and liquidity pressure in that regard," he noted.

He said that "the discussions are continuing. The situation is unsustainable.

In July, the SABC in a parliamentary briefing admitted that of its monthly Sentech bill of R71 million, it only pays R41 million per month or less.

Quite shocking, is that Nomsa Chabeli admitted a while ago that the SABC has no signed master transmission contract in place with Sentech - something absolutely crucial and a massive existential risk to the broadcaster's business.

It means that Sentech can rightly cut off the public broadcaster's TV and radio signals at any time since there is absolutely no official agreement in place between Sentech and the SABC to keep its signals on..

Tebogo Leshope appointed as new COO at parastatal signal distributor, Sentech.

Tebogo Leshope has been appointed as the new chief operating officer (COO) at South Africa's parastatal signal distributor, Sentech.

Tebogo Leshope has been with the state-owned company for 19 years. Sentech does broadcasting signal distribution in South Africa for for instance the South African public broadcaster, the SABC, that owes Sentech hundreds of millions of rands in arrear payments.

In a statement announcing Tebogo Leshope's appointment, Sentech says he possesses telecommunications experience, with proven leadership capabilities on highly complex operations and telecommunications projects and that he has managed complex technology projects, developed technology operating models and led operations.

Tebogo Leshope is qualified in electrical engineering, with a Bachelor of Technology from University of Johannesburg, Project Management from Unisa and is a registered professional with the Engineering Council of South Africa, South African Institute of Electrical Engineers and the Institute of Directors Southern Africa.

"As Tebogo Leshope takes on the COO responsibilities, we are positive that he will provide Sentech with core operations leadership, driving operational excellence, business growth and migration of core platforms to digital," says Mlamli Booi, Sentech CEO.