The DA’s Johann Jordaan says that in future he would no longer be referring to the BBC as an entity of Council, but rather a nonentity which could not keep itself afloat.
In a speech delivered on Thursday, May 22 in Council, Jordaan demanded that mayor Mondli Gungubele and the city manager, Khaya Ngema, urgently account to residents and take the necessary steps to stop the gross waste of money on an entity that is clearly not financially viable and provides benefits to a limited number of people.
Jordaan questioned the date of a resolution made by Council to advance these millions to the BBC as he could find no record of it.
In a different resolution taken in June 2012, and based on the Auditor-General’s (AG) Report from the 2010/11 financial year, Council resolved to implement drastic steps to address the AG’s remarks that there was a material uncertainty about the entity’s ability to continue to operate.
“Despite this resolution two years ago to stop the financial hemorrhaging of the BBC, no steps had been taken,” adds Jordaan.
“The AG had also pointed out that the BBC’s accounting officer and management did not exercise adequate oversight to ensure compliance with all laws and regulations and the preparation of financial statements.
“Almost two years down the line and still the finances of the BBC are in a worse state than ever and are being kept afloat only by what the DA regards as an illegal loan,” says Jordaan.
The DA pronounces that questions put forward by the DA to the Transport Department about the second quarter report for the current financial year, have been ignored, yet the DA reports the following appalling financial transgressions:
q Inexplicable entries such as “Payables from Exchange Transactions” increasing by 184 per cent from R2.1-m to almost R6-m in the space of six months.
q A rapid 52 per cent decrease in the net asset value of the company from R4.1-m to R1.9-m, also in the space of half a year.
According to Jordaan, both these points make it abundantly clear that the accounting officer, management and directors of the BBC are simply unable or unwilling to execute Council’s resolutions meant to reign in this white elephant.
Jordaan said there had to be consequences when resolutions of Council were ignored and that the DA would not hesitate to take this matter further.
