While the SABC is nearing collapse, top execs take home R12.1m annually

While the SABC is nearing collapse, top execs take home R12.1m annually

- The SABC is planning on cutting thousands of jobs to cut financial losses

- Meanwhile, the minister of communication revealed that the top 3 executives annually earn R12.1 million combined

- The CEO R5.1m, the COF earns R4m and the CFO earns R3m. President Cyril Ramaphosa earns R3.6m annually

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While the South African Broadcasting Corporation is near crumbling, its top three executives are taking home salaries of R12.1 million combined annually.

On Thursday, Nomvula Mokonyane, the minister of communication, confirmed the top three execs' salaries.

The CEO alone earns R5.1m, while the COO earns R4m and the CFO earns R3m, but Mokonyane said this was significantly less than previous top executives' salaries. President Cyril Ramaphosa earns R3.6m annually.

According to the minister, the executives' packages only accounted for 1.1% of the SABC's total salary spend.

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The SowetanLIVE reported that Mokonyane was answering questions posed by the National Council of Provinces on Thursday about the SABC's state.

Meanwhile, one Wednesday, the CEO, Madoda Mxakwe, told reporters during a media briefing that the national broadcaster suffered a net loss of R622m for the 2017/18 financial year. Mzakwe said this made the SABC technically insolvent and unable to fullfil its financial responsibilities.

In 2016/17, the SABC had a loss of R997m. In the 2015/16 financial year, the broadcaster recorded a loss of R411m.

Hlaudi Motsoeneng, the fired COO's 90% local-content policy had some effect on the financials. The interim board has since ended his policy.

In July, Briefly.co.za reported that the controversial former Chief Operating Officer denied claims that he cost the corporation over R300 million in lost advertising revenue.

Earlier this week, the broadcaster revealed it would undertake a restructuring process, which includes cutting some jobs.

During the announcement, the SABC's board said at east 1 000 permanent employees will be retrenched, while about 1 200 freelancers may be affected too.

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However, Mokonyane said the SABC's turnaround plan could not be based on laying off employees, but a total review of the business, as well as its funding model.

She said Tito Mboweni, the finance minister, agreed to meet, and engage, with her and the SABC on the broadcaster's state and the turnaround plan, within the next three weeks. They hope to come up with solutions to the financial challenges confronting the SABC at present.

“The shareholder to date has not consented to the current process of retrenchments currently being pursued by the board and management of the SABC."

Mokonyane remained mum on whether action had been taken against those respobsible for the current situation at the SABC.

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Source: Briefly News

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