The SABC will run out of money in 3 months

The SABC will run out of money in March 2019, and there is currently a fight over proposed job cuts at the company.

Retrenchments of 981 permanent staff and 1,200 freelancers are set to take place as the SABC looks to turn around its poor financial state.

However, Communications minister Stella Ndabeni-Abrahams has stated that job cuts must not take place, as this is not in the government’s best interest.

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.

Laying off employees

The Sunday Times has reported that SABC board chair Bongumusa Makhathini has accused the government of failing to help them with a cash bailout during these tough times.

Makhathini also stated that Ndabeni-Abrahams told the board there will be no job cuts at the SABC and gave them “five minutes” to consider her instruction.

The report stated that the ANC government is not against job cuts, but wants management staff to be let go instead of large numbers of lower-level employees.

This all follows the SABC board predicting the company will run out of money by March next year.

Recent reports have highlighted the poor financial state of the SABC, including it losing R2.3 billion on buying sports rights over the past six years.

These factors have resulted in a standoff at the SABC, and the multiple board resignations. Making matters worse is that the SABC’s board now has too few members to make a quorum, and Parliament must fill the vacancies.

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The SABC will run out of money in 3 months