SABC Blames Financial Woes On Former Executives

And then it was four: Another resigns from SABC board. PICTURE: Robbie Tshabalala

JOHANNESBURG: The South African Broadcasting Corporation (SABC)has blamed former executive managers of leading the company to its current financial crisis.

The cash-strapped broadcaster announced on Wednesday that it was technically insolvent and that it was unable to carry out its mandate.

It has introduced extreme cost-cutting measures including the proposed retrenchments of 981 permanent staffers and over 1,200 freelancers.

Group CEO Madoda Mxakwe says the company needs to deal with its biggest expenditure amounting to over 40% of its revenue which is the wages.

He says retrenchments is the only way to make the company solvent.

“This is not sustainable, hence we’ve engaged with organised labour to see ways in which we can review our structure.”

The SABC’s revenue is currently at R6.6 billion with an expenditure of R7.2 billion.

It has, so far, this year suffered a net loss of over R300 million with a cash balance of just under R140 million.

The company has already spent R3,5 billion and not making enough revenue to stay afloat.

Human Resources manager Jonathan Thekiso says the SABC will look into ‘last in first out’ criterion and with emphasis on skills, experience and qualifications when going ahead with retrenchments.