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SABC implodes

LLOYD GEDYE | JOHANNESBURG, SOUTH AFRICA - Jun 12 2009 07:15
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The SABC’s debt mountain is even larger than reported -- the public broadcaster owes SuperSport nearly R100-million.

More than 1 000 members of the independent television production industry marched on the SABC last week demanding a change in leadership and for the SABC to pay up. But the Mail & Guardian has established that larger players have also been affected by the public broadcaster’s financial woes.

Industry insiders told the M&G that the R100-million owed to SuperSport relates to Premier Soccer League (PSL) matches, as well as cricket matches that the SABC sub-licenses from Multichoice’s sports arm.

The insiders said that negotiations between SuperSport and the SABC regarding the money owed are continuing and that the SABC will be able to settle the outstanding millions only once it receives the R2-billion bail-out it has requested from the government.

But that bail-out looks unlikely to materialise soon. Communications ministry spokesperson Tiyani Rikhotso told the M&G this week that the treasury, the SABC and the communications department will meet to find “a solution to the financial challenges facing the public broadcaster”.

“So far there haven’t been any movements in that regard but it’s something that we are definitely attending to,” said Rikhotso.

The SABC has the rights to at least 150 PSL matches a year from SuperSport. In 2007 the PSL sold the broadcasting rights for the league’s matches to SuperSport in a deal that was reported to be worth R1.6-billion.

In terms of the deal SuperSport had rights to more than 250 PSL matches, of which 150 were to be sub-licensed to a free-to-air broadcaster (as opposed to a subscription service) as stipulated in the contract. The SABC, which had previously paid R67-million a year for the PSL rights, snapped up the free-to-air matches, as this was key to bringing in massive advertising revenue.

SuperSport chief executive Imtiaz Patel said at the time that securing the rights to PSL matches was crucial to its growth strategy. The pay-TV operator was focusing on the emerging black middle-class market with its DStv Compact offering, priced at R200 a month, and the PSL matches were a huge drawcard.

CONTINUES BELOW


SuperSport and the SABC refused this week to divulge any details about the sub-licensing arrangements between them. “This is a contractual issue and we are dealing with our creditors directly,” SABC spokesperson Kaizer Kganyago told the M&G.

He confirmed that football and cricket were the main sports the SABC sub-licensed from SuperSport. Asked if its R100-million debt would affect the public broadcaster’s relationship with SuperSport and its sports coverage generally, Kganyago said that the relationship “was not under threat”.

Patel refused to discuss the sub-licensing agreements. “The SABC are our partners on many matters related to sports rights,” he said. “The agreements between us and the SABC are confidential and therefore I feel it is inappropriate to disclose these matters in public.”

Board slammed for firing Mpofu
The South Gauteng High Court added to the SABC’s woes by ruling against its decision to fire its former chief executive, Dali Mpofu, writes Lynley Donnelly.

The Mpofu saga began in May last year after he fired the SABC’s head of news, Snuki Zikalala, for allegedly leaking internal documents. The SABC board, under former chairperson Khanyi Mkonza, axed Mpofu the following day, citing his lack of authority to fire Zikalala.

Mpofu took the matter to the courts and has since been reinstated and suspended a number of times.

This decision relates to his first suspension. The court’s decision in his favour was subsequently appealed by the SABC.

The decision by the appeals bench of the South Gauteng Court to dismiss the SABC’s appeal was unanimous.

Judge Mahomed Jajbhay declared that Mkonza’s actions had been unacceptable. In ordering costs, he said: “I find that the conduct of the chairperson [Mkonza] when assessed against the relevant background facts and the principles of corporate governance is not to be encouraged … She clearly got caught up in an emotional response to the suspension of Dr Zikalala.”

He went on to say that the “leadership qualities of Ms Mkonzo as well as the other non-executive directors were wanting”.

A spokesperson for Mpofu said that the axed chief executive was elated by the decision but “was not necessarily contemplating going back to the SABC”.

He and his lawyers would make a decision on the matter only after examining the documents, she said.

SABC spokesperson Kaizer Kganyago said the SABC still had to study the judgement.

Board dissolves
The SABC board dissolved on Thursday after the resignation of three board members, in a development that will force Parliament to appoint an interim governing structure.

The board members who quit with immediate effect were Bheki Khumalo, Andile Mbeki and Desmond Golding.

The South African Press Association reported that the three said in a joint statement that it was “in the public interest” for them to do so.

“We are mindful of the enormity of the challenges facing the SABC.”

Their resignations come days after board chair Khanyisile Mkonza resigned, making way for the appointment of an interim chair, Ashwin Trikamjee.

However, legal opinion obtained by the ministry of communications was that Trikamjee’s appointment was illegal as only President Jacob Zuma is entitled to appoint the chair and deputies.

According to Ismail Vadi, chairperson of Parliament’s communications committee, the board was in any event “technically dysfunctional” because it did not have a quorum.

According to Tiyani Rikhotso, spokesperson for the department of communications, the parliamentary committee must now nominate a new set of acting board members who will serve until a new board is appointed. Their term should last no more than six months.

The SABC had been scheduled to appear next week before the portfolio committee.

On Thursday Business Day reported that Communications Minister Siphiwe Nyanda intended taking the board to task for installing an illegal interim chair. He was due to meet the board on Friday to express concerns about this and other issues plaguing the broadcaster, including financial mismanagement and its plea for a R2-billion bailout from government.

Before his resignation Khumalo had expressed his desire to step down as soon as possible.

“It is the right thing to do. Let the ruling party and the president appoint an interim board,” he told the Mail & Guardian.

He said the board had needed only his and one other person’s resignations for it to dissolve.

“The only alternatives are for the board to dig in their heels or to go through the parliamentary process,” he said. Khumalo also expressed concern that a lengthy parliamentary process could inflict additional reputational damage on the broadcaster.

Rikhotso echoed these sentiments. “We are only interested in seeing a board that will steer the SABC back to a stable state,” he said.
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Comments

Privatisation, the only solution. Once again a classical example of a bunch of incompetents helping themselves to our money. Why then pay TV licenses if the tax payer regularly has to foot the bail-out bill.
Dan Robberts on June 12, 2009, 8:00 am
Seems like all government instutions like the SABC,ESKOM and boards need to be investigated and audited.Also and independant audit needs to be done on individulas who hold high positions in these instutions. Billions are poured into these organisations which is squandered and no proper accounting done to show how the money was spent.

They even have the gall to ask for more like "oliver twist" did.Why hasn't an audit been carried out on SABC which is so embroiled in controvesy and mismanagement which all points to corruption and fraud .People are lining their pockets willy nilly. Imagine asking for 2b to bail themselves out.Where is the money allocated by govt.in the normal budget for the year. Also it was noted some 200m goes astray every month not accounted for. This is ridicolous and disgusting and is sad news for the poor taxpayers who are heavily fleeced by the government.

Anyway the government should take full responsibility for this sad state of affairs in our country.They need to put measures in place to halt fraud and corruption in all govt.departments and dont think that the taxpayer is a cash cow and can milk it anyway you want.The taxpayers are tired of all the corruption that is taking place.


sunkeranundhan v pillay on June 12, 2009, 9:09 am
Run by the previously disadvantaged, ruined by the elite black ruling class who care nothing for their fellow comrades and South Africans, and now we the taxpayer must bail the inept fools out and still pay TV licences, get lost SABC you reap what you sow. I owe you nothing, if you can't pay your bills, I wont pay mine.
Dylan Goodwin on June 12, 2009, 9:37 am

Thanks to the "Big Man at Shell House"...That's what you get when you appoint an arrogant incompetent board.
If You plant weed dont expect anything else you will sow precisely the same fresh smelling weed.

Surely, this is what 'The Big Man' was looking for.
Siphiwo Siphiwo, service delivery now on June 12, 2009, 10:18 am
typo

sow = reap
Siphiwo Siphiwo, service delivery now on June 12, 2009, 10:19 am
Time for the SABC to get a wake up call. Businesses have to be viable in the modern era. Their only hope is for a government bailout option. That in itself does not make business sense. With the rot setting in they have lost any competitive edge.

The competition is tough out there and the SABC seems to be on the downward spiral of dimishing returns. As debts mount and revenue declines their viability is being challenged. Propogating ideology and being the official government mouthpiece does not contribute to make a business success. Their problems are compounded by gross mismanagement and being under the control of Parliment. Tough business decisions have to be made if the public broadcaster is to survive.
Les Wil on June 12, 2009, 10:56 am
Siphiwo, I agree with you man. I am just wondering if there is anything that the "Big man at Shell House" left behind working properly.

-NPA & Scorpions Dysfunctional
-ESKOM capacity very threathning
-SAPS == Riddled with incompetance
-Education == Mess
-Home affairs = desaster
-SABC == ICU
-SAA == Drug moles & still looking for bail-outs

Even the role of being some Dila Lima of COPE does not seem to be that effective, they are behaving exactly like ANC before he was recalled.

Ohpis Ayihtm on June 12, 2009, 11:08 am
Dylan Goodwin
"Run by the previously disadvantaged,"

Oh, thats where we are going? Playing race cards. Dont get us started. We dont wanna go there, please!
Siphiwo Siphiwo, service delivery now on June 12, 2009, 11:22 am
Siphiwo & Ayihtm is still fashionable to blame the "Big man" for everything?

Please don't suspend your thinking because of this blame nonsense, he appointed the board and not the executive committee!!!
Sol Sol on June 12, 2009, 12:11 pm
Its high time that the fat cats also learn to dance and work for the money. The elite/middle classes think they know how to manage things btu surely knows how to run them to the ground then we tax payers must bail them out.

Get rid of the incompent managers and select those who can manage our resources. Appoint me...
Desmond Damons on June 12, 2009, 12:53 pm
It does not matter to apportion blame any longer - it is the system that is unsustainable.

The SABC will die whther there is a bailout or not - try to spend one night infront of it for longer than 3 hours and you will see that content is non-existing, re-runs abound and there is nothing 'newer' than 1985 other that one or two local shows.

As an advertiser, I will not go to the SABC to be flighted after some film or show that is 20 years old (or older) or watch a continuity program that has no lighting, little production and even less talent up front.

The lights will be switched off and not even the football will save it in the long run.
The Gadfly on June 12, 2009, 12:59 pm
Sorry to say, but overall the content on SABC is pathetic and seems to be mainly targeted at the lower income populace and those not able to afford satellite TV. Other than some sports programmes, I doubt very much if the average viewer with DSTV spends more than 5% of his viewing time on any SABC channel. So, SABC, you can go belly up - you've had your time.
John Tringham on June 12, 2009, 1:14 pm
If the SABC is dismantled like that why approve resignations of people in key positions to resign before audits and investiagtions are done. Government really needs to wake up and introduce strong controls and checks and balances if they spend resources to the parastals otherwise we will be taxed just fill up some individuals pockets who are already in luxuries.
MPHO nyathikazi on June 12, 2009, 1:19 pm
unbelievable.not only does the sabc have an obligation to the taxpayer and the general public who do pay for their tv licences,they now have an obligation to the rest of the world to air the best world cup ever.364 days away today,that's what they have.however,they did good by resigning thereby rendering the board dissolved.we cannot afford the international humiliation of having a public broadcaster board in a war with itself.first went snuki,then kanyi,then yesterday's three blind mice and next the entire board-good riddance.as for dali,i hope he has been vindicated even though he is not returning to the job.government should save themselves the heartache and sell this thing while they can still make a profit out of it rather than a 2 billion bail-out which has no guarantees of helping out.
zamo gasela on June 12, 2009, 1:34 pm
This again shows that the current Affirmative Action policy is not working! And you cannot appoint somebody in a position of power just because he/she is the right colour. Or used to be a political activist. Or is a friend or family member.

The only way the SABC can be taken seriously is through privatisation – but I cannot see this happening as the ruling party does love having the broadcaster in its pocket.

It is a real pity you can’t jail somebody for mismanagement!
Concerned Citizen on June 12, 2009, 1:45 pm
Sell the damn thing and for a 60% discount, insert a clause that you can insert 35% bulldust, lies and propaganda in all the news items. And that you'll broadcast 2hrs a week of JZ speaking (without being asked any critical questions).
QED - best of both worlds.
pete ess on June 12, 2009, 3:40 pm
Who actually watches anything on SABC anymore.? I stopped a long time ago ( except I cross over for the weather on SABC 3 news / the presenters are good and they can't mess/ fiddle /alter /bias the weather report like they do all other news ). The SABC has just about lost all credibility and should put us and themselves out of our misery by a complete clean out and fresh start.
karin morrow on June 12, 2009, 9:04 pm
The SABC is merely a symptom of a Larger Increasingly Dysfunctional organisation...the ANC !
Craig LUNN on June 12, 2009, 11:00 pm
Bring in KPMG - audit every gov dept and parastatel.....This whole ANC heap of cadres is rotton to the core like a ponzi pyramid scheme. Take the sword to this incompetant bunch of crooks. How on earth can a TV station lose so much money without being shut down? The mind boggles - daily these days.....
Nahor Ecnarraf on June 13, 2009, 8:31 am
Has anyone noticed how the SABC promote the separation of its viewers according to their ethnicity? For instance, SABC 1 for Nguni speakers, SABC for Pedi, Tswana, Venda, Afrikaans and Xonga speakers and SABC 3 for English speakers.

Erick Mulaudzi on June 15, 2009, 10:49 am
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