The SABC posts a massive R622-million loss

The SABC has reported a loss of R622 million for the year ended 31 March 2018, according to a report by Business Day.

This figure is an improvement over the SABC’s restated loss of R1 billion in the previous financial year.

The broadcaster’s latest annual report reflected a revenue figure of R6.6 billion, slightly higher than the previous year, too.

Auditor-general Kimi Makwetu said the SABC was commercially insolvent as it was unable to pay its debts on time, and issued a disclaimer on the financial statements of the corporation.

According to SABC chairman Bongumusa Makhathini’s statement, the SABC board has implemented measures to stabilise the corporation and address “endemic levels of corruption and maladministration that have been prevalent at the SABC for many years”.

“The corporation is still paying the price for years of ineffective leadership, failed governance, and prejudicial decision making,” he said.

“Self-inflicted actions like the arbitrary 90-10 decision continue to impact on the SABC’s revenue,” he added, addressing the impact of local content quotas.

He said the migration from analogue to digital terrestrial television was necessary to sustain the broadcaster.

ICASA’s regulations regarding sports rights and SABC channels should also be reviewed to lessen the financial strain on the entity, said Makhathini.

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The SABC posts a massive R622-million loss