SOUTH AFRICA’S PUBLIC BROADCASTER ADOPTS COST-CUTTING MEASURES TO IMPROVE FINANCES

CAPE TOWN, The South African Broadcasting Corporation (SABC) has imposed a number of cost-cutting measures in a bid to improve its financial position as it buckles under financial strain, says Communications Minister Ayanda Dlodlo.

Appearing before the the National Assembly here Thursday, she told the Members of Parliament (MPs) that the SABC’s performance for its fourth quarter ended March 31, 2017, showed an operating loss of about 509 million Rand (about 38 million US dollars), adding that the figures quoted were yet to be audited.

Dlodlo said her department had been working with the SABC and the office of Finance Minister Malusi Gigaba to takcle the situation at the public broadcaster.

Responding to a question from MP Phumzile Van Damme from the opposition Democratic Alliance (DA) party, who had asked if the SABC, in view of its financial position, would be able to pay its debts in the foreseeable future and if it had asked for a cash injection from the National Treasury, the Minister said: The SABC will not have enough financial resources to meet its contractual obligations.

What the Minister of Finance has said to us is that we would need to look at quite a number of issues before we come to him for assistance to either assist in ensuring that we are able to get funding from the banks or from other investors or even from the Treasury itself for that matter.

And we have looked at quite a few things; we have imposed a moratorium on capital expenditure, we have ensured that everybody who is on paid suspension that the cases must be expedited so that a decision could be made whether or not they remain as employees of the corporation.”

The Minister also said a decision was taken to reduce the number of consultants that the SABC uses.

The sad state (of affairs) is that the SABC was using financial consultants when they have almost eight, if I am not mistaken, chartered accountants, she added.

The Minister also said the SABC had imposed a moratorium on leave encashment, adding that this was something that she had not discussed with Gigaba yet. We are also looking at improving strategies on the collection of licenses. The collection of licences is dismal where we have 150 staff members that are responsible for this, she said.

Source: NAM NEWS NETWORK

SOUTH AFRICA’S PUBLIC BROADCASTER ADOPTS COST-CUTTING MEASURES TO IMPROVE FINANCES

CAPE TOWN, The South African Broadcasting Corporation (SABC) has imposed a number of cost-cutting measures in a bid to improve its financial position as it buckles under financial strain, says Communications Minister Ayanda Dlodlo.

Appearing before the the National Assembly here Thursday, she told the Members of Parliament (MPs) that the SABC’s performance for its fourth quarter ended March 31, 2017, showed an operating loss of about 509 million Rand (about 38 million US dollars), adding that the figures quoted were yet to be audited.

Dlodlo said her department had been working with the SABC and the office of Finance Minister Malusi Gigaba to takcle the situation at the public broadcaster.

Responding to a question from MP Phumzile Van Damme from the opposition Democratic Alliance (DA) party, who had asked if the SABC, in view of its financial position, would be able to pay its debts in the foreseeable future and if it had asked for a cash injection from the National Treasury, the Minister said: The SABC will not have enough financial resources to meet its contractual obligations.

What the Minister of Finance has said to us is that we would need to look at quite a number of issues before we come to him for assistance to either assist in ensuring that we are able to get funding from the banks or from other investors or even from the Treasury itself for that matter.

And we have looked at quite a few things; we have imposed a moratorium on capital expenditure, we have ensured that everybody who is on paid suspension that the cases must be expedited so that a decision could be made whether or not they remain as employees of the corporation.”

The Minister also said a decision was taken to reduce the number of consultants that the SABC uses.

The sad state (of affairs) is that the SABC was using financial consultants when they have almost eight, if I am not mistaken, chartered accountants, she added.

The Minister also said the SABC had imposed a moratorium on leave encashment, adding that this was something that she had not discussed with Gigaba yet. We are also looking at improving strategies on the collection of licenses. The collection of licences is dismal where we have 150 staff members that are responsible for this, she said.

Source: NAM NEWS NETWORK