Final days of the SABC TV Licence

Communications minister Solly Malatsi has said he is revising the South African Broadcasting Corporation’s (SABC) funding model so that the entity can sustain itself while the SABC Bill is in development.

This follows Malatsi’s questioning in the National Assembly after he decided to withdraw the Bill from Parliament at the end of 2024, deeming it ineffective.

“To sustain the SABC while a new bill is being developed, I am focusing on creating a revised funding model that aligns with modern broadcasting realities, Malatsi said.

To determine what works effectively, he said this process would involve assessing the state broadcaster’s current funding mechanisms, such as TV licence tax and advertising revenue streams.

Malatsi also wants to investigate innovative ways of generating revenue for the public entity that leverages digital transformation, as non-compliance with the tax-based TV licence reached 87% in 2024.

Media Monitoring Africa director William Bird has highlighted that while the TV licence tax was supposed to generate revenue to fund content produced as a public service, it is instead the content that has brought in the most revenue for SABC.

One suggestion that the SABC has already made is a household levy in place of the TV licence, as it says access to its content has expanded to multiple devices and is no longer only available on a TV.

It also suggested that the South African Revenue Services (Sars) and DStv owner MultiChoice help collect this levy.

However, MultiChoice has said that making a private company responsible for collecting a state-owned rival’s tax revenue is an unacceptable solution.

The Minister said he would work closely with stakeholders to conduct technical reviews to ensure the sustainability of the funding models implemented.

This should ensure the SABC’s financial independence and competitiveness when the Bill is implemented.

Deputy Communications Minister Mondli Gungubele and the portfolio committee chair on communications and digital technologies have made it clear that they think the Bill should have been passed and amended rather than withdrawn.

When asked why he believed it was necessary to withdraw the Bill rather than amend it, Malatsi said it failed to provide a credible funding model and secure the resources needed to support the SABC’s social model.

“Legislation without a practical and effective funding mechanism would not solve the broadcaster’s challenges and would merely delay meaningful solutions,” Malatsi said.

Additionally, Malatsi said the Bill also caused concern regarding the excessive powers granted to the Minister, saying it is “something I believe would erode media freedom.”

Malatsi’s decision caused ripples in President Cyril Ramaphosa’s Government of National Unity.

Ramaphosa swiftly stripped ministers of the power to withdraw bills without first getting approval from him and Deputy President Paul Mashatile.

DA leaders in the GNU have said the president’s new rule cannot apply retroactively. However, the Minister of the presidency, Khumbudzo Ntshavheni, disagreed.

This disagreement continued when Malatsi voiced his frustrations with National Assembly speaker Thoko Didiza, who had yet to gazette the Bill’s withdrawal after a month of the Minister writing to her.

“It’s very clear that there is stalling from the Speaker’s office to withdraw the bill, which is extraordinary because that would be in violation of the very same rules she’s supposed to uphold,” he said.

Diko condemned these comments by saying that the criticism was unwarranted and unconstitutional.

However, Malatsi remains steadfast in his position, having said that he will explore legal avenues to reinforce the decision to withdraw the Bill.

“Any legal recourse, should it be required, would be aimed at ensuring adherence to parliamentary rules,” The Minister’s spokesperson, Kwena Moloto, told MyBroadband.