Johannesburg - The SABC has been sent back to the drawing board on plans for a 24-hour news channel, with Finance Minister Pravin Gordhan saying: “This is not the time for vanity projects.”
Saying the Treasury had seen a business plan for the channel but had yet to approve it, Gordhan said SABC management “must take credible measures to stop wasteful and ill-considered projects and expenditure”.
The finance minister warned that “vanity projects” could not be considered “when this country faces fiscal constraints”.
In a written reply to a parliamentary question from Cope’s Juli Kilian, Gordhan noted that the SABC had failed to cut staff costs in line with a target set in the terms of agreement for a R1.4 billion government loan guarantee granted by the Treasury in 2009.
Although the SABC had committed to slashing the wage bill by R283 million by 2013, with a target of R1.476bn for the past financial year, its staff costs had become bloated to R1.753bn.
Gordhan said the broadcaster was aligning its corporate plan, which included its budget, to reflect the loan guarantee targets, but had not submitted it to the Treasury.
Communications Minister Dina Pule said the projected operational cost of the channel would be R180m a year, rising to R240m in the fifth year. The SABC would also need R75m more for capital expenditure.
SABC spokesman Kaizer Kganyago, however, said plans for the launch of the channel were “on track”. He said he could not give a new date for the launch as there were “logistical issues” that needed to be resolved.
Asked if the SABC had secured enough funding, he said he was unable to comment specifically, but “from where I’m sitting, everything is on track”.
Political Bureau