SABC R57m out of pocket, Gov owes broadcaster for TV licences and ads

SABC R57m out of pocket, Gov owes broadcaster for TV licences and ads

- The SABC is in deep trouble and to make matter worse the government owes the broadcaster R57 million

- Communications and Digital Technologies Minister Stella Ndabeni-Abrahams after DA MP Phumzile van Damme requested the information

- The government owes SABC TV licences fees and costs for advertisements

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The SABC is struggling financially and to make matters worse one of its largest defaulters is the government.

The government owes a whopping R57 million to the SABC for TV licence fees and adverts.

Communications and Digital Technologies Minister Stella Ndabeni-Abrahams revealed this during a parliamentary questions session with DA MP Phumzile van Damme.

Van Damme wanted to know exactly how much the government owed the broadcaster and how it plans on paying the money back.

SABC R57m out of pocket, Gov owes broadcaster for TV licences and ads

Minister Stella Ndabeni-Abrahams has revealed that the government owes the SABC R57 million. Photo credit: The South African Government
Source: Facebook

The debt has piled up as a result of 20 departments and 57 SOEs still owing TV licence fees as.

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R29.2 million is owed in advertisements between provincial and national departments as well as municipalities.

The Government Communications and Information Services (GCIS) owed around 30% of the advertising debt.

The SABC is in a race against time to cut costs to save R700 million, a plan to retrench 400 employees failed following protests.

This plan was put on hold until the end of 2020, however, it has to cut costs and has promised to rehire 170 of the planned 400 retrenched staff as the broadcaster restructures.

Earlier, Briefly.co.za reported that the SABC has issued a stern warning to Uzalo to stop boring its audiences with their current storyline.

It seems the broadcaster has heard people's cries and have taken measures to sort the situation out.

Uzalo has been bleeding viewers as many have complained about the direction the story was going.

The Sunday World has reported that the SABC has told the writing team of the show to get it together. They have been instructed to come up with a better storyline or risk getting dropped.

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Uzalo was once the most viewed show in the country, peaking at 11.4 million viewers. However, according to the Broadcast Research Council of South Africa, Uzalo's viewership dropped drastically to 8.8 million viewers.

In other news, the embattled state broadcaster, SABC has reported a R511 million loss for the financial year 2019/2020. This was greater than the previous year's loss which sat at R482.4 million.

The SABC had less liquidity this year with R72 million at the ready which was R58 million less than 2018/19.

A 12% year-on-year revenue loss has added to the broadcaster's woes, ad advertising income dropped across all of its platforms.

SABC board chairman Bongumusa Makhathini was upbeat and believed that the leadership were steering the state-owned-enterprise in the right direction.

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Source: Briefly.co.za

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