Johannesburg - The cash crunch afflicting the SABC has now affected its service providers, who have been unceremoniously informed that they will not be paid for July.
SABC spokesperson Kaizer Kganyago confirmed to The Star on Wednesday the authenticity of a letter written by the broadcaster’s group executive for television, Nomsa Philiso.
In the note dated July 30, Philiso cited the SABC’s short to medium-term pressure “in respect of cash flow due to the current liquidity challenge experienced”, for service providers not receiving their payments last month.
According to a highly placed source, at least five well-known TV production houses producing some of the SABC’s biggest money spinners haven't been paid. The withholding of payment has apparently necessitated producers to approach banks for loans in order for them to remain afloat.
This comes on the back of The Star’s report in March that the public broadcaster was owed R25.5 billion in TV licence fees over the past three years. This caused the SABC to write off more than R4.5bn of unpaid debts of over a million “invalid” accounts in the 2016/17 financial year, according to a written response to Phumzile van Damme, the DA MP who is the party's parliamentary spokesperson on communication.