SABC reveals it owes suppliers R1.8bn

The South African Broadcasting Corporation, financial problems continues to escalate after the public broadcaster revealed it owed creditors R1.8 billion. The SABC Board and executive management told MPs on Tuesday it was not out of the financial crisis and National Treasury has not yet injected the cash.

Bongumusa Makhathini, the chairperson of SABC Board said they were struggling to meet their financial obligations and hoped the cash would come soon. He said the national treasury has been promising to give it the bailout but the SABC must meet certain tough conditions of the treasury.

Makhathini said once they receive the R3.2bn bailout a big portion of it will be to settle the debt, he said they need to pay their creditors the R1.8bn they owe them; he noted that every month in balancing its books the SABC needs to prioritise salaries for its employees.

Madoda Mxakwe, SABC Group Chief Executive said he has been frank with their suppliers they were not able to pay them. He said “Owing to liquidity issues we are owing R1.8bn. I am frank to suppliers that we are unable to pay them.”

The chairperson of SABC Board also confirmed that they have resolved the issue of sports rights with Supersport, the SABC will now pay less than the R280 million to broadcast Premier Soccer League matches. SABC viewers faced a soccer blackout for two weeks after a stalemate between the SABC, PSL and Supersport but after the intervention of the Minister of Sports, Arts and Culture Nathi Mthethwa and his colleague at Communications Stella Ndabeni-Abrahams the issue was resolved at a meeting in Cape Town last week.

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