The newly appointed South African Broadcasting Corporation (SABC) interim board is examining the costs of each of the beleaguered broadcaster’s departments ”line by line”, chairperson Irene Charnley said on Tuesday.
”We are going line by line to see where we can cut costs and return revenue,” Charnley told Parliament’s portfolio committee on communications.
”We need to stabilise the SABC at all levels. The situation is not normal. Financially the organisation is in dire straits.”
The SABC reported a financial loss of R839-million for the 2008/09 financial year. The broadcaster had asked the government for a R2-billion bailout.
The interim board included Charnley, Philip Mtimkulu, Libby Lloyd, Leslie Sedibe, Suzanne Vos, Gab Mampone, Robin Nicholson and Charlotte Mampane.
Charnley said the board had made some progress, despite being officially appointed less than two weeks ago. It had met with all group executives to agree on measurable goals for the next quarter.
The focus would be on stabilising the SABC, increasing revenue and reducing costs, Charnley said.
The newly appointed board would have fortnightly assessments to see whether the objectives were being achieved.
It had met with the minister of communications as a way of ”establishing communication with its shareholder”.
A number of government departments had been approached about outstanding debts to the SABC.
The board had also met organised labour at the SABC, which was threatening to strike over a wage impasse.
”The point of this was to establish a relationship and common objectives,” Charnley said.
”We are attempting to resolve the impending wage dispute and strike.”
A meeting had been held with former chief executive Dali Mpofu and they were ”initiating a process to resolve the current impasse”.
The filling of key vacant posts, such as the head of news, was another priority.
Meeting the SABC’s financial obligations to Fifa for the 2010 Soccer World Cup was also high on the board’s agenda.
Charnley promised full cooperation and transparency into the Auditor General’s forensic investigation into financial mismanagement at the public broadcaster.
”We will do our best. We do see this as national service. We are excited about serving our nation.”
Committee chairperson Ismail Vadi joked that the business class flight to Cape Town had been empty on Tuesday morning as the new board and executives had all been seated in economy class.
Charnley replied: ”We did all travel economy class because that is the right thing to do. It is only a two-hour journey.”
Executives splurge
Earlier this month three broadcasting and media unions demanded that Parliament investigate a financial strategy and planning function held by SABC executives with hired consultants in January last year. The outside catering bill for the function came to R1,38-million.
The Broadcasting, Electronic, Media and Allied Workers’ Union (Bemawu), the Communication Workers’ Union (CWU) and the Media Workers’ Association of South Africa (Mwasa) condemned the jamboree as one of the ”most extravagant and irresponsible wastage[s] we have come across, which borders on criminal conduct”.
At a time when the SABC was already heading for the financial doldrums, an invoice for the planning function reveals that R52 200 was paid for tea, coffee and muffins and R104 400 for a buffet lunch, apparently for 30 people. The draping of the corporation’s Renaissance room came to R348 000.
The three unions have handed their allegations to Parliament and they will now form part of a forensic audit.
Their submission to Parliament was backed in many cases by invoices and documents.
The unions have collected invoices showing that as late as January this year, when the broadcaster was already running at a loss, it continued to splash out on Pongracz champagne, KWV brandy and Johnny Walker Black and Jack Daniels whiskies.
Invoices for liquor on consecutive days in May last year are for a total of R8 504. Other examples of ”fruitless and wasteful expenditure” listed by the unions include:
- The purchase of 10 iPods for R34 078 last year. ”The SABC does not use iPods and we suspect these were bought for friends and family,” the unions said;
- Ten ”gratitude gifts” bought just before Christmas last year, for which the unions produced invoices amounting to R79 200;
- Mont Blanc briefcases costing R58 050;
- Twenty Martini sets and 30 pocket jotters amounting to R60 461; and
- A cherry veneer eight-seat boardroom table for R18 810. This was ordered by the sales and marketing finance department on March 12, when an austerity plan was already in force.
The unions also condemn over-reliance on outside consultants, legal firms and recruitment agencies, when matters could have been dealt with internally. — Sapa