Picture: African News Agency/ANA Archives.
Picture: African News Agency/ANA Archives.

SABC owes suppliers R1.8bn

By Siyabonga Mkhwanazi Time of article published Aug 28, 2019

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Johannesburg - The financial problems at the SABC continue to escalate after the public broadcaster revealed it owed creditors R1.8 billion.

The SABC Board and executive management told MPs on Tuesday it was not out of the financial crisis and National Treasury has not yet injected the cash.

SABC Board chairperson Bongumusa Makhathini said they were struggling to meet their financial obligations and hoped the cash would come soon.

National Treasury has been promising to give it the bailout but the SABC must meet certain tough conditions of the treasury.

Makhathini said once they receive the R3.2bn bailout a big portion of it will be to settle the debt.

He said they need to pay their creditors the R1.8bn they owe them.

He said every month in balancing its books the SABC needs to prioritise salaries for its employees.

SABC Group Chief Executive Madoda Mxakwe said he has been frank with their suppliers they were not able to pay them.

“Owing to liquidity issues we are owing R1.8bn. I am frank to suppliers that we are unable to pay them,” said Mxakwe.

The SABC said it was technically insolvent with a debt of R1.8bn.

Makhathini also confirmed that they have resolved the issue of sports rights with Supersport. The SABC will now pay less than the R280 million to broadcast Premier Soccer League matches.

SABC viewers faced a soccer blackout for two weeks after a stalemate between the SABC, PSL and Supersport.

But after the intervention of the Minister of Sports, Arts and Culture Nathi Mthethwa and his colleague at Communications Stella Ndabeni-Abrahams the issue was resolved at a meeting in Cape Town last week. 

Political Bureau

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