SABC debt may sink top programmes

Published May 16, 2009

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The future of the country's most popular soapies and dramas hangs in the balance this weekend.

The SABC has failed to pay nearly 20 production houses more than R40-million, and now many of the smaller ones have had to lay off staff to avoid bankruptcy.

Two months ago, the affected companies formed the Independent Producers Organisation (IPO) to negotiate and communicate with the SABC after the broadcaster's executives told them there was no money to pay them.

SABC managers promised to make it up the next month.

The situation became so serious that the producers of Isidingo, Endemol, threatened to "walk out with their tapes" on April 30. But that night the broadcaster found some money to make a payment.

Colin Howard, line producer for Afrikaans soapie 7de Laan, said the soapie had been forced to pay its cast and crew from its overdraft facility.

"April was the first month that the SABC missed a payment. (Because we made use of the overdraft) we were only able to pay staff 80 percent of their salaries.

"We received full payment this week and were able to pay the staff the outstanding amount," Howard said.

Meanwhile Generations producer, Friederich Stark, said unlike other independent producers who have not received payment or have received late payment from the SABC, the popular soap opera doesn't "even have a production contract, let alone a contract number" to be able to invoice the corporation.

"For almost four months we have been bankrolling our script development process, and for nearly two months, the production of the series.

"Our contract was not renewed timeously by the SABC because of an 'internal bungle' and because the corporation wanted to renege on the terms and conditions in respect of renewals stipulated in our past production agreements with them. It is indeed a sorry state of affairs," Stark said.

Earlier this week, the Sowetan reported that actors with SABC1's Emzini Wezinsizwa had lashed out at the public broadcaster after it declined a proposal to recommission the comedy. The series has an average viewership of 1.8 million and competes favourably with Generations.

But the SABC's head of drama, Khethiwe Ngcobo, said SABC1 did not think the comedy was good enough.

IPO chairwoman Desiree Markgraaff said the major concern was that the SABC was not paying companies according to the contractual agreements. Instead of negotiating with them on payment, it was simply keeping quiet.

She said some of the debts dated back to 2006, but most were from the past six months.

"Many smaller production companies are laying off staff. We are very, very worried that by the end of this month there will be companies forced into liquidation if they are again not paid. This is very serious," said Markgraaff.

Penguin Films, which produces the award-winning Home Affairs; Curious Pictures, which produces The Lab; as well as T.O.M. Pictures, which produces A Place called Home and Late Night with Kgomotso, have already laid off staff.

"We need the SABC to communicate with us. They need to tell us there is a problem so we can all make other plans.

"What they're doing is allowing people to trade, and when the end of the month comes, they can't pay their bills. When you get into debt that way, it's very difficult to come clean again," said Markgraaff.

On Friday night, SABC spokesperson Kaizer Kganyago said the SABC did not deny that it owed production companies money, but blamed it on contractual issues.

"All these companies formed a coalition and we started talking to them through this coalition. And we were fine with that. But now we have individuals coming to us demanding payments as well, and we can't have that," said Kganyago.

"Secondly, there are companies whose invoices do not tally with what is in the contracts. These things must be sorted out first before we can make payments," said Kganyago.

But Markgraaff said it was inconceivable that everyone could have submitted incorrect invoices for months on end across a range of projects.

"Some of the companies have been submitting invoices for years - and now there is a problem with it?"

The IPO will meet on Monday to decide how to deal with the public broadcaster.

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