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

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly.co.za News on your News Feed!

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.

PAY ATTENTION: Do you want to know what's trending on Briefly.co.za? Join our WhatsApp group today.

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

Briefly.co.za 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.

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!

Source: Briefly.co.za

Mailfire view pixel