SABC is technically insolvent and struggling to cover R1.8b debt

SABC is technically insolvent and struggling to cover R1.8b debt

- SABC has commented on its dire financial situation, revealing it is in nearly R2 billion worth of debt

- The broadcaster is hopeful for a bailout from National Treasury to pay its creditors

- However, Treasury is adamant that the state-owned entity must meet certain conditions

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SABC's financial situation seems to be worsening, with the broadcaster revealing creditors are owed R1.8 billion.

The state-owned entity revealed to MPs that it has not managed to wiggle its way out of its financial dilemma, with National Treasury yet to provide the promised cash injection.

Bongumusa Makhathini, board chair for the SABC, commented that they were battling to meet their obligations, hopeful that the funding would be made available soon, reports IOL.

National Treasury had promised the public broadcaster a bailout, but only once they managed to meet certain conditions.

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The majority of the R3.2 billion payment will be spent on the nearly R2 billion debt burden according to Makhathini, Briefly.co.za gathered.

Yolande van Biljob, CFO at the entity, has revealed that the broadcaster is in actual fact technically insolvent:

"We are also under tremendous strain of being factually insolvent as a result of our liquidity issues, cash is depleted. A number of reasons for the loss are a combination of cost saving, cash conservation, amongst others and of course reduced revenue."

JacarandaFM reports that the only time the broadcaster was profitable in the past ten years was in 2012, 2013 and 2014.

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Source: Briefly.co.za

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