Please be patient‚ we have a cash problem – SABC

The cash crunch at the SABC is affecting its payments to producers‚ service providers and creditors.

SABC Television group executive Nomsa Philiso wrote a letter to producers and service providers on July 30‚ saying the public broadcaster was “under pressure” in the short to medium term.

“We are sorry to inform you that the SABC has had no alternative but to defer the payments which are due on the July 31 2018.”

She added that management at the public broadcaster would speak to service providers and producers before August 15. “The SABC staff and management thank all its service providers/producers of their continued support in ensuring a seamless broadcast is achieved‚ without which it would be impossible to continue generating funds.”

SABC spokesperson Kaizer Kganyago confirmed the letter was written.

Madoda Mxakwe‚ the new SABC group chief executive officer‚ said in an interview with the SABC on Wednesday that the broadcaster had been in a “difficult revenue position” over the past three years.

“We find ourselves in a situation where the expenditure far exceeds the income that we’re getting‚” Mxakwe said.
“We’re not in a good situation.”

Mxakwe said if the SABC struggled‚ it affected SABC employees‚ the local production industry and South African citizens. He did not want to share numbers because there was an upcoming annual general meeting. “We’ve been making payment arrangements with all our suppliers‚ with all our creditors.”

Kganyago said the broadcaster did not publicise their cash flow struggles because they spoke directly to producers and service providers. “If we wanted to talk to them through you (the media)‚ we would have issued a statement‚ but that’s not how we do business.”

Kganyago did not understand why people were surprised about the SABC’s financial problems. “This is not the first time that we have not been able to pay some of our creditors.”

According to its 2016/17 annual report‚ the SABC had a net loss of of R977m.

By: Nico Gous – TimesLIVE

Source: TMG Digital.

Leave a Reply