THE SABC has attributed its financial ruin to irregular spending by former COO Hlaudi Motsoeneng.
SABC spokeswoman Neo Momodu told Daily Sun’s sister paper City Press the public broadcaster has “completely collapsed”. She was reacting to news that the SABC was asked by the Companies and Intellectual Property Commission to explain why it believes it is not trading recklessly under insolvent circumstances.
“The SABC would like to make it clear that Mr Motsoeneng was the central figure in the complete financial and governance collapse of the corporation, which the current executive management is redressing,” Momodu said.
The public broadcaster may run out of money by March. A few weeks ago four SABC board members – Khanyisile Kweyama, Krish Naidoo, John Matisonn and Mathatha Tsedu – resigned.
One of the cost-cutting measures which the board announced a few months ago was that it had no choice but to get rid of more than 2 000 permanent workers and freelancers.
This was rejected by unions. Even the newly appointed communications minister, Stella Ndabeni-Abrahams, threatened tough action should the board go ahead with the retrenchments.
Matters have gotten so bad at the SABC that, as reported in City Press, the public broadcaster had to seek aid from Joburg mayor Herman Mashaba to continue operating.
Its advertising revenue continues to fall as it is unable to afford new shows or pay production houses on time. It has had clashes with the PSL several times recently as it could not afford to pay millions required for matches to be broadcast live.