No Funding For SABC Unless It Complies With Conditions -South African Govt
South Africa’s Treasury Director-General, Dondo Mogajane, said in parliament yesterday that the SABC would have to comply with the conditions that have been laid down by the Treasury before it can access multi-billion-rand bailout that it has requested from the government.
Mogajane explained that the conditions related the SABC getting itself in order so that it can successfully sustain itself financially going forward.
The guarantee was refused mainly because South Africa’s public broadcaster had not met its obligations, and the business plan it had brought forward was not convincing.
The 11 conditions to be met were listed in a letter that was sent to the SABC in April. Those included finalising the board, removing nonperforming activities, increasing advertising revenues and cutting back on content expenditure.
The SABC is on the verge of collapse and has warned South Africans that it could be forced to go off the air if the government doesn’t quickly come to its rescue. It has requested a government bailout of over $230million to stay afloat.
Though the nation’s Finance Minister Tito Mboweni had declined to grant the SABC the bailout immediately, he previously stated in a letter that he recognised the need for the public broadcaster to be assisted financially.
In parliament yesterday Mboweni said that government financial support for struggling state-owned entities such as the SABC, SAA and Denel would be released in instalments as certain conditions need to be met first.
Credit: This article originated from www.businesslive.co.za