SABC CEO highlights “dire financial state”

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JOHANNESBURG, September 15 – The South African Broadcasting Corporation (SABC) Group Chief Executive Officer, Madoda Mxakwe highlighted the public broadcaster’s “dire financial state” to staff on Friday, saying the SABC had a “demanding financial year” with total revenue of R6.6 billion against a budget of R7.3 billion.

This resulted in an under-performance of R709 million (10 percent), Mxakwe said as he addressed staff.

“The SABC had a net loss of R622 million for the 2017/18 financial year. One of the SABC’s biggest cost drivers is the salary bill. To put this into context, the SABC is a R7.2 billion revenue generating company with a salary bill of R3.1 billion,” the SABC said in a statement.

“The current ratio of venue to wage bill is not sustainable given the SABC’s dismal financial situation. It is for this reason that the SABC is contemplating other cost cutting measures to further reduce costs. The next step is for the SABC to engage in joint consensus seeking consultations with organised labour.”

The SABC said it met with organised labour on Thursday, to inform them that the organisation was contemplating to implement section 189 of the Labour Relations Act (LRA).

“This forms part of the cost cutting measures, which includes the assessment of  key cost drivers, in order to make the organisation financially sustainable and fit for purpose.” (ANA)