SABC sounds the alarm
The South African Broadcasting Corporation (SABC) has highlighted that the lack of a finalised funding model has left it with persistent liquidity constraints and going-concern risks.
Presenting before Parliament on Friday, 26 June 2026, the broadcaster warned that it would struggle to secure short-term liquidity or invest in the content needed to attract more viewers.
“Our going-concern is primarily impacted by two key areas: the funding bill and the funding model remains unresolved,” SABC CEO Nomsa Chabeli said.
“As such, the ability to attend to our long-term infrastructure and strengthen our balance sheet remains a weakness and subsequently our efforts to gain funding remain constrained.”
She explained that while the SABC faces liquidity issues, it is technically solvent. However, the audit process revealed that the going concern risk remained.
“Our challenges remain financial sustainability, and we still are experiencing underinvestment in compelling content,” Chabeli said.
She warned that until such time as a sustainable funding model is chosen and implemented, the SABC would always struggle without interim funding.
She added that, when you look at the SABC’s balance sheet, it still carries amounts owed to creditors, and particularly the amount it owes state signal distributor Sentech, which had climbed to R1.7 billion.
“I must acknowledge the efforts of the Honourable Minister Malatsi and his department are putting in place to try and mediate and assist in settling that historical debt,” Chabeli said.
She took the opportunity to contextualise an agreement between the SABC and Sentech that settled an escalation over short payments and long-term debt.
“What we have is that the Minister of Finance has committed to addressing the funding requirements for signal distribution for the purposes of the SABC directly to Sentech,” Chabeli said.
Regarding Sentech, the National Treasury intervened in February 2026, allocating R889 million for signal distribution and dual illumination in South Africa.
R700 million allocated without review
Of the R889-million allocation, R189 million was allocated for the purposes of dual illumination, or running both analogue and digital broadcast signals simultaneously.
The remaining R700 million was allocated without reviewing Sentech’s business model, governance structure, or long-term financial sustainability.
Finance minister Enoch Godongwana acknowledged the lack of review in response to Parliamentary questions from BOSA’s Mmusi Maimane.
Godongwana revealed that the National Treasury hadn’t called for a review. However, he said the Department of Communications and Digital Technologies had been asked to engage on funding models.
He said this included reviewing the roles of several organisations under its watch, including Sentech, and how they can be made fit for purpose.
Godongwana said the additional R189-million, allocated for dual illumination, came with a set of conditions.
“Sentech must develop a model for cost recovery in the event that the entity must operate both analogue and digital systems in the foreseeable future,” the minister said.
Regarding the lack of review, he indicated that, as broadcasting services fall under the ambit of the Minister of Communications and Digital Technologies, the Minister has the mandate to initiate reviews.
“The Minister of Communications and Digital Technologies is the executive authority of Sentech and, therefore, has the mandate to initiate reviews on Sentech’s business models and governance,” he said.
The SABC’s inability to pay Sentech in full for its signal transmission fees has had a significant impact on the state signal distributor.
As of Friday, 26 June 2026, the SABC’s debt to Sentech had climbed to R1.7 billion, up from approximately R1.6 billion in February 2026.
Presenting before Parliament in February, Sentech chief financial officer Clarinda Simpson revealed that the SABC’s monthly bills were around R71 million for most of 2025.
She said the public broadcaster paid only R20 million in most months, rising to R30 million in November and December 2025.
Loading ...