South Africa's public broadcaster wants to replace SABC TV Licence with a compulsory 'media levy'.

by Thinus Ferreira 

The South African public broadcaster is pushing ahead to get its broken SABC TV Licence fee system scrapped and for it to be replaced by a compulsory new tax in the form of a so-called "media levy" that will have to be paid by all households and businesses.

The SABC continues to say that pay-TV operators like MultiChoice and China StarTimes, operating as StarSat in South Africa, will have tack on this "media levy" to subscription fees and pay that over to the SABC to help the public broadcaster.

MultiChoice has publicly vowed that it would not do that and compromise its DStv subscriber database.

In 2021 just 21% - only 2.2 million out of the 10.3 million SABC TV Licence holders that the broadcaster is aware of - bothered to still pay their annual TV licence during the 2020/2021 financial year.

The new TV tax for the SABC would no longer be dependent on whether a person or a TV household has a TV set that can receive SABC signals or be device-specific - for example a tablet or a mobile phone - but is simply based on whether a South African has access to SABC content, irrespective of device.

The SABC appeared before parliament's standing committee on public accounts (SCOPA) on Wednesday to brief the committee on the broadcaster's irregular expenditure and finances with SABC chairperson Bongumusa Makhathini who said that the plan is to replace the outdated SABC TV Licence fee system with a public media levy.

He said that the plan is "the replacement of the current TV Licence regime with what we call a public media levy which also has a component where the subscription major players can also assist with the collection of that public media levy".

"That's very important because it's still one of our major streams of revenue at the SABC, the first one of course being commercial activities - sponsorship, advertising and then immediately after that is the SABC TV Licence which we want to change to be a public media levy".

The SABC also wants to change the so-called "must-carry" regulations further that determines carriage of its TV channels on pay-TV services like MultiChoice's DStv and others, with the SABC that wants to make more money from platforms that carries its content.

"We want those regulations changes for the SABC to benefit from its content fully".

"Because of our very high cost structure, signal distribution cost is still one of the major costs faced by the SABC and we are currently in talks with Sentech to have the tariff that Sentech charges reviewed," Bongumusa Makhathini said.

SABC: No further bailouts

When asked by the committee whether the SABC can rule out any further bailouts for the public broadcaster, Bongumusa Makhathini said "I can confirm that there is no possibility of the SABC coming back for a bailout".

"I can assure you that there will be no need for another bailout for the SABC."

Digital migration, audience decline cutting into revenue

"The SABC revenue decline - one of the themes that drive it is the migration from linear to digital platforms," Yolande van Biljon, SABC CFO, told the committee. 

"In our new financial year, our focus also shifts to putting measures in place to ensure we generate revenue from the digital platforms."

"There are of course our partnerships with Telkom and eMedia and the likes which also provides us access to their platforms that are additional platforms where we are able to generate revenue from."

Ian Plaatjes, SABC COO, said "the decline in audience has a direct impact on the decline in advertising revenue".

"The decline in audience is multi-causational - the global trend that there is. Not much we can do about that. There is an impact on the analogue switch-off but we are managing that with the department of communications and digital technologies."

SABC video streamer to launch Q3 2022

Ian Plaatjes said that the SABC now plans to launch the public broadcaster's own video streaming service, similar to the BBC's iPlayer, by the third quarter of this year.

The SABC initially said it would launch before the end of its current financial year which ends 31 March 2022.

Ian Plaatjes said a big driver of audience loss for the SABC is audience migration to digital.

"Right now we do not have our own digital platform. We have gone to market and are in the final stages of testing the responses of that and we will have our own over-the-top (OTT) platform in the market by the third quarter of the next financial year."

"What that means is we're going to be launching additional channels within the new financial year but we are also changing the process of acquiring content for our channels - we are optimising that."

"It's a big game-changer. And you will see a lot more compelling content coming through on our existing platforms but also on the new channels that we are going to be launching that will also be available on our OTT platform."

"We will be aggressively playing in the digital space."

He said that the SABC started testing the software on Tuesday this week that would allow the broadcaster to commercialise its own streamer's platform as well as the third-party platforms its using.

"We will be using it as a pilot phase for this month and will go live from next month. So for the first time, we will start off a financial year where we have the ability to monetise our digital platforms as well."

ALSO READ: Launch of SABC's video streaming service pushed to next financial year, delayed to sometime before March 2023.

ALSO READ: The SABC plans to launch its video streamer as well as new TV channels from September, promises 'compelling new content' as it shakes up its content acquisition process.

South Africa's communications minister, Stella Ndabeni-Abrahams, finally meets with the government bailout team working to try and get another billion rand bailout for the SABC.

South Africa's latest minister of communications, Stella Ndabeni-Abrahams, the 11th communications minister in 11 years, on Saturday finally met with the government bailout team working on trying to get another bailout of billions of rand in the form of a government-guaranteed bank loan for the financially devastated SABC.

 On Twitter Stella-Ndabeni Abrahams said "today we met with the team that is working on the government bailout for SABC in preparation for presentation to the cabinet committee".

The beleaguered South African public broadcaster is hovering on the brink of financial collapse and has repeatedly been asking for another government bailout in the form of another government-guaranteed bank loan - similar to the last SABC bailout in 2011 - for months since the latter part of 2018.

The SABC told parliament that it needs roughly R3 billion.

In a statement, Stella-Ndabeni Abrahams said the team sought to provide her "with a progress update as she prepares to pursue cabinet approval for the allocation of a SABC government bailout".

The team comprises of senior officials from the department of communications, National Treasury and the SABC.

Stella Ndabeni-Abrahams said that "she appreciated the progress made and reiterated to the team that restoring the SABC’s financial sustainability is of vital importance as this will enable it to deliver on its public service mandate to inform, educate and entertain".

Stella Ndabeni-Abrahams said that she notes "the corporate governance issues emanating from an inquorate SABC board" and that "she will, in terms of her shareholder responsibilities, continue engaging parliament to bring finality to this matter".

BREAKING. SABC gets another R1.2 billion bailout in the form of the government allowing the commercially insolvent public broadcaster to raise its credit extension cap; producers, Sentech and Safa to be paid urgently.

The commercially insolvent SABC is being given another government bailout of R1.2 billion in the form of the South African government's National Treasury allowing the beleaguered South African public broadcaster, once again hovering on the brink of financial collapse, to increase its credit extension cap.

Independent South African producers, signal distributor Sentech, the South African Football Association (Safa) and a litany of other service providers are collectively owed hundreds of millions of rands by the SABC and will be paid urgently using the money from the enlarged loan extension.

Nomvula Mokonyane, South Africa's minister of communications, revealed in parliament that the SABC is being granted another R1.2 billion bailout, following its bailout of R1.47 billion 2009 in the form of a government-guaranteed loan from Nedbank.

The government is again bailing out the SABC which cannot find anybody to lend it money and that and once again posted its 8th consecutive, annual loss of R622 million for the financial year until the end of March 2018.

The South African government and taxpayers become responsible and carries the burden should the SABC default on the R1.2 billion credit extension.

Nomvula Mokonyane blamed unspecified "historical challenges" for the SABC's financial woes, instead of corruption, mismanagement and a lack of governance, saying "even the Auditor-General has alluded to because the primary challenges of the SABC have to do with historical debt, the commitments that have been made, and of importance issues around content, and quality of that particular content."

Nomvula Mokonyane, speaking in parliament said "as of a day ago, National Treasury has granted consent for the SABC to increase its borrowing limit from the capital markets in line with the public finance management act, and the broadcasting act".

She said "the SABC has been given borrowing powers and a borrowing limit of up to R1.2 billion by National Treasury".

Nomvula Mokonyane said "at this stage the SABC board and management have assured that employees of the broadcaster will continue to receive their salaries as per the norm with without prejudice. Equally suppliers owed by the broadcaster have been in engagements with the SABC and there's been progress in effecting payments to creditors".

"Monies raised through the process consented to by National Treasury will also be used to pay creditors including independent producers, Sentech and the South African Football Association".

"We are quite confident that in line with the payment plan that the SABC has put together, we'll be able to attend to these issues."

"Secondly these funds will be utilised to acquire new content to replenish the current content offering, so as to attract new audiences that's generating commercial renevues, but also bring back home those that have walked away from the SABC."

"As a responsible government we will not allow the SABC to collapse and are committed to providing the SABC board and management with our continued support to ensure that this national asset continues to serve millions of South Africans with knowledge and entertainment".

Nomvula Mokonyane said "working through with the minister of finance we have been able to give the necessary support for the SABC to have an increased borrowing limit".

SABC spin tsar Kaizer Kganyago again goes on SABC News to say the SABC's requested billion rand bailout from government is not a 'bailout' - but it is.

The SABC spokesperson Kaizer Kganyago again went on SABC News (DStv 404) to say that the SABC's latest billion rand requested bailout from the South African government is not a "bailout" - only it is.

Hilariously, Khanyisile Kweyama, SABC board interim chairperson, herself uses the word bailout to describe the latest financial lifeline of billions of rand the SABC urgently requires for the cash-strapped and struggling South African public broadcaster to stay afloat.

Other SABC interim board members like journalist and editor Mathatha Tsedu also uses the word bailout.

Funnily enough, the essentially bankrupt South African Airways (SAA) - awaiting yet another mega-billion bailout from government - and South Africa's government are both calling and referring to the SAA's looming cash-injection as a bailout.

Yet the SABC's Kaizer Kganyago wants to spin the SABC's bailout as not being a bailout - but it is.

Question: Can the SABC, once again hovering on the edge of a financial cliff like it did in 2009 when it got a government bailout, get the money without the South African government guaranteeing a mega-billion rand bank loan for the SABC?

No.

That is what makes it a bailout.

The ameliorative way the SABC wants to talk away what it wants and what will likely be happening - a bailout - by using padded, softened words, is a disservice to the South African public.

The dictionary definition of a bailout reads: "an act of giving financial assistance to a failing business or economy to save it from collapse".

"A bailout is a situation in which a business, an individual or a government offers money to a failing business to prevent the consequences that arise from the business's downfall. Bailouts can take the form of loans, bonds, stocks or cash."

From the economic definition, it's very clear that what the SABC requested is a bailout, and that, if given again by the government, would be classified and can very correctly be described as a bailout.

It is important to not use euphemisms and SABC PR speak like "government-guarantee" when the word "bailout" is what the SABC is asking for and a bailout is what the mismanaged SABC wants just 9 years after its previous bailout.

Extremely troubling is the secrecy of Ayanda Dlodlo, minister of communications, around the SABC's latest bailout.

Ayanda Dlodlo promised transparency but is actively blocking the South African TV industry, SABC audiences and the South African public from knowing what bailout amount the SABC asked the South African government for.

Ayanda Dlodlo's refusal to make the SABC bailout amount requested public - a billion rand amount she's kept secret for over two months and counting now - damages democracy and South Africa's TV industry.

Without knowing the bailout amount, the South African public, citizens and South Africa's TV industry can't debate the issue; can't have a public conversation of whether it's appropriate, or whether its sizeable enough or not.

Is appears that Ayanda Dlodlo wants to announce to South Africa's TV industry and the South African public only that the SABC got a bailout after its been approved by South Africa's treasury - an after-the-fact, fait accompli.

South Africans are not trusted - in fact held in apparent contempt - by Ayanda Dlodlo who is not transparent publicly about what the nature is the financial help is that the SABC requires, although she knows.

It's not clear why South Africa can only know after the SABC has been given a bailout, what the bailout was/is/will be.

With other government bailouts - for instance SAA, and others - the request is made public knowledge with ordinary South Africans knowing what size of money injection has been asked from the government - a government funded by its people.

Part of an open democracy - and for it to function successfully - is for its government and public institutions to communicate accurately with its citizens and to use correct words, and also to give citizens access to the public information from its public institutions to help them to make better and informed decisions.

BREAKING. SABC finally fires controversial Hlaudi Motsoeneng after former COO found guilty of causing irreparable damage to public broadcaster.

The SABC has fired the guilty Hlaudi Motsoeneng after a disciplinary hearing found the former chief operating officer (COO) of the beleaguered South African public broadcaster guilty on all charges, including bringing the SABC into disrepute and causing irreparable damage to the SABC.

The SABC on Monday morning called another hastily arranged press conference set for 15:00 on Monday afternoon that eventually started at 15:42 - late as all SABC press briefings the past year and a half.

Advocate Nazeer Cassim who chaired the disciplinary hearing, handed his judgment to the SABC on Monday morning.

SABC chairperson Khanyisile Kweyama at Monday afternoon's press conference that was carried as a live broadcast on eNCA (DStv 403), SABC News (DStv 404) and ANN7 (DStv 405), addressed and took some questions from a group of journalists from various media outlets as well as several SABC journalists.

Some more SABC News journalists and staffers stood at the wall, intently listening to everything being said.

In all, less media and press attended the hastily called presser than in the past.

During the press conference Khanyisile Kweyama revealed and confirmed that Hlaudi Motsoeneng's unilaterally imposed 90% content quota directly, and negatively impacted the SABC's revenue.

She revealed that the SABC has canned the controversial Gupta-owned The New Age Breakfast Briefings broadcast on SABC2 with the one this past Friday, 9 June that was the last one.

She said that the last of the controversial The New Age Breakfast briefings broadcast on SABC2 during Morning Live was held on Friday and that the SABC is working to extract itself from the contract.

On Hlaudi Motsoeneng's imposed SABC News censorship and ban on using visuals on SABC TV News bulletins or live coverage of destruction of property she said that " the ban on the use of violent visuals have been rescinded. Journalists may use footage as they see fit".

On the controversial 90% local content quota that decimated SABC radio listenership and TV viewership, especially SABC3, and called "90 10" [ninety-ten], Khanyilise Kweyama said "the SABC interim board is not anti-transformation".

"90/10 was a bit drastic. 90/10 has been a source of revenue loss if implemented across all [SABC] platform. There are certain channels that are quite high that have achieved 80%, and we are therefore not going to say to those channels regress to 50%".

"When they have achieved and they are breaking even, and they are making the profits that are necessary, we will leave them alone," said Khanyilise Kweyama.


Hlaudi Motsoeneng fired
On Hlaudi Motsoeneng's firing, Khanyilise Kweyama said the SABC had charges him with misconduct and of breaking the rules of his employment contract.

"Nazeer Cassim gave us feedback this morning and he has recommended, which the board has accepted, that Hlaudi Motsoeneng be dismissed from the SABC. The SABC interim board has accepted those recommendations and we have communicated with Hlaudi Motsoeneng his dismissal from the SABC."

"I will not go into the details for the notice period and all those as those are people's files that are specific."


Suspension of James Aguma
On the suspension of James Aguma also undergoing a disciplinary hearing process and who was acting SABC CEO, Khanyilise Kweyama said "I will not comment on James Aguma as we are still in a process. We have charged, the process is underway."


SABC's 'infamous MultiChoice deal'
An SABC journalist asked Khanyilise Kweyama about "the infamous MultiChoice deal" and whether the SABC is for termination or renegotiation.

The SABC is supplying MultiChoice with the SABC News (DStv 404) and SABC Encore (DStv 156) rerun library channels for the DStv satellite pay-TV platform.

"We are in conversations with MultiChoice on that contract. That contract starts being renegotiated 18 months ahead of its expiry period which is around now."

"At this stage I cannot comment on whether we will renew, review, adjust, but we have started the negotiations.

"The SABC archives were not sold to MultiChoice. A tape a day goes to MultiChoice," said Khanyilise Kweyama.

"If there are any grey areas, as an interim SABC board, as we enter into this negotiating phase, we will pick those out, and that will also be a determining factor as to whether we continue with that contract, or adjust, review, or start from scratch."


SABC's new government bailout of billions
"I won't say the amount," said Khanyilise Kweyama when asked about the cash-strapped SABC's latest request for a government bailout of likely billions of rand to save the SABC from the brink of financial collapse.

"The latest is that we are at a stage where the two ministers - minister of communications and minister of finance - are discussing the bailout".


SABC not paying producers but able to pay staff
"We have publicly said that the financial situation of the SABC is in a bad state," said Khanyilise Kweyama, who said SABC staffers are being paid.

She however said nothing about producers supplying content to the SABC who are not being paid for months now.

"The fact that we are applying for a bailout says that the situation is dire."

"On the salaries, we have paid salaries in March. We did pay salaries in April. We did pay salaries in May. Are we tightening the belt? Are we sometimes robbing Peter to pay Paul? Yes, we are sometimes doing that."

"But at no stage in the past 3 months have salaries of staff been in jeopardy," said Khanyilise Kweyama.

"The only people who haven't been paid are the board."

"We are in the red but we don manage by ensuring the board is always on top of everything."

"We do still need to be rescued."