SABC gets R2.1bn bailout after failing to meet all state's conditions

SABC gets R2.1bn bailout after failing to meet all state's conditions

- The SABC will be granted a R2.1 billion bailout after failing to meet conditions set out to receive R3.2 billion

- The state had given the cash-strapped broadcaster terms to meet in order to qualify for the financial lifeline

- Of the eight conditions that had been set out, only five were met, with the remaining three either only partially met or not at all

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The SABC will be receiving a R2.1 billion bailout from the government but failed to meet the terms set out in order to qualify for a further R1.1 billion.

SowetanLIVE reports that Communications minister Stella Ndabeni-Abrahams announced the bailout on Friday.

The minister had confirmed that the balance would be paid only once the conditions had been fully met by the embattled state-owned entity.

Ndabeni-Abrahams noted that the broadcaster needed more than the R3.2 billion bailout promised to it, reports News24.

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READ ALSO: SABC taking legal action to recover millions from Hlaudi Motsoeneng

The preconditions the entity met included:

  • Determining the immediate cash requirements and set out projections for the short-term
  • Submit identified initiatives to enhance revenue and cut costs
  • Conduct investigation into reasons for the SABC's financial collapse and causes for the failed implementation of past turnaround plans
  • Develop turnaround plans

The preconditions that have not yet been met:

  • Submit separate financial reporting for public and commercial broadcasting services
  • Identify non-core assets for disposal
  • Develop a comprehensive private sector participation strategy reported that the SABC had engaged in a legal battle with former COO Hlaudi Motsoeneng to recover R21 million he allegedly looted from the entity.

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