The Companies and Intellectual Property Commission (CIPC) has written to the SABC asking it to explain why it believes it is not trading recklessly under insolvent circumstances.
The City Press newspaper reported that the SABC has been issued by CIPC a notice, which stated that the public broadcaster’s liabilities exceed its assets by R1.8 billion.
The SABC needs R600 million a month to operate, while only generating R380 million in revenue
The cash-strapped public broadcaster has 20 business days to respond to a notice from the CIPC.
Two weeks ago, The Sunday Times reported that the board of the SABC has projected that the public broadcaster will run out money by the end of March 2019.
The Sunday Times reported that the SABC board chairman Bongumusa Makhathini has accused the government of failing to help the broadcaster by not responding to request for a government guarantee.
The board of the ailing public broadcaster is aiming some 981 full-time workers and more than 1 000 freelancers as part of the plan to cut cost.
But the proposed jobs cuts have led to the board fighting with the newly appointed Communications Minister Stella Ndabeni-Abrahams.
The fight over the job cuts and the looming cash crisis at the SABC has resulted in the resignation of four non-executive board members at the broadcaster. The 12-member board is now inquorate and cannot take legally binding decisions.
The Sunday Times reported that the board was divided on how to save the public broadcaster, with other directors siding with Ndabeni-Abrahams.