Auditor-general red flags SABC’s abysmal results; R3bn bailout an option

The auditor-general has warned about the going-concern status of the SABC‚ noting that the public broadcaster was commercially insolvent at the end of March.

SABC Building in Aukland Park. Picture ROBBIE TSHABALALA

The SABC tabled its 2016-17 annual report in Parliament on Tuesday showing it had received an adverse audit opinion from the auditor-general and recording a staggering loss of R1.1-billion versus R593-million in the previous financial year.

The public broadcaster is facing its worst financial crisis and the Treasury is considering its request for R3-billion guarantee. It is feared it could collapse it fails to get the guarantee.

The SABC’s huge losses were attributed partly to axed executive Hlaudi Motsoeneng’s controversial 90% local-content policy‚ which the interim board has since canned. It is also struggling to collect licence fees.

Business Day https://www.businesslive.co.za/bd/national/2017-09-27-audit-opinion-reveals-sabc-is-insolvent/

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Source: TMG Digital.

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