SABC technically insolvent, struggling to honour payments - CFO

daveza

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The South African Broadcasting Corporation (SABC)'s financial officer Yolande van Biljon has told Parliament that the organisation is technically insolvent and struggling to honour payments to service providers and contractual obligations.

The SABC said its dire financial situation worsened during the 2018/19 financial year and the corporation ended with a cash balance on only R72 million in the bank.

The public broadcaster's top brass was back in Parliament on Wednesday to brief Members of Parliament on its finances and human resource matters.

The SABC said one of the main contributors to the corporation’s dire financial status was the funding model of the corporation which has an over-reliance on commercial and advertising revenue.

If a company is technically insolvent are they still allowed to trade ?
 

Nicodeamus

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RonSwanson

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With an average cost per employee of R726 240 (in 2017), technical insolvency would be hard to avoid. Then again, at least the CEO vs employee ratio is a "5", not like Transnet at a whopping "21", Gini turning over in her grave.

SABC is a gravy train, pour more money in, hire more incompetent and racist cadres, subsidise more lunches and suppers, that strategy is guaranteed to milk the South African people dry.

At least they have the equality.
 

daveza

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Just noticed this -

The SABC said it hoped its turnaround strategy would yield results in a couple of years.
How tf do they expect to survive to be around in a 'couple of years ?
 

daveza

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Meanwhile, the SABC revealed that it was wallowing in debt, as it owed its creditors R1.8bn.

Board chairperson Bongumusa Makhathini said a big chunk of the R3.2bn funding would go towards settling debt.

If you are technically insolvent you should pay off ALL the debt so people who did work for you don't get shafted.
 

Milano

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Consign that instrument of looting to the trash where it belongs.
 

Ianf1

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Can't the directors and executive managers be held personally liable if SABC carries on trading while insolvent?
 

Techne

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Bonuses for all. Bring on the hyperinflation. Let it all burn to the ground and let the games begin. Nothing like a good old civil war between retarded chiefs shafting their own people while scrambling for power and deflated money.
 

access

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is begging ingrained in some people or something. from the man in the street to the man in the seat, it just doesnt stop.
 
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