SABC Exhausts Reserves, Can’t Pay Suppliers

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SABC
SABC / eHowzit

The SABC can’t pay its suppliers after apparently exhausting its cash reserves.

“There are no reserves left; there’s no buffer. The broadcaster is living week to week, hand to mouth,” a source told City Press.

The report said the SABC’s unpaid bills at the end of July are believed to exceed R100m owed to 64 companies, with independent TV producers owed about R90m of that.

Treasury is not willing to guarantee a loan, said the newspaper, adding that according to another insider: “Honestly, I can’t see how this entity will survive unless something drastic happens.”

Respected independent media consultant Britta Reid told City Press that much of the SABC’s current crisis can be laid at Hlaudi Motsoeneng’s [former chief operating officer]  door, a claim Motsoeneng emphatically denies.

Even though Communications Minister Nomvula Mokonyane is believed to support a loan guarantee, Treasury is said to be insisting on first seeing stability at the SABC so that it doesn’t “pour money into a black hole”. 

The sources say Treasury has advised the broadcaster to seek alternative revenue streams.

For more read:  SABC on its knees

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