General views of the SABC building in Auckland Park, Johannesburg on 18 November 2020. Picture: Michel Bega
The South African Broadcasting Corporation (SABC) is looking disposes of non-core assets amid the paused retrenchment of at least 400 employees who had been declared redundant in a cost-cutting exercise.
SABC announced on Friday that it would issue notices of termination of lease agreements for its non-core properties – effective 1 December 2020 – following an extensive process in line with Section 54(2) (d) of the Public Finance Management Act (PFMA).
The public broadcaster confirmed that the non-core assets include residential properties which were being leased to SABC employees and non-employees.
The corporation said it would hold a public auction – date will be announced soon – in order to ensure a fair and transparent process.
“The SABC will therefore not be able to offer right of first refusal to current tenants, as the process to purchase the properties will be open to the public. This decision is part of the recommendations of the process undertaken in line with the PFMA.
“In an effort to accommodate the tenants, given that the festive season is upon us, the corporation also deemed it appropriate to extend the termination notice period beyond that of the lease agreements. Tenants will further be given all the relevant support during this time.”
SABC’s chief financial officer (CFO) Yolande van Biljon highlighted that the selling of non-core assets would assist the corporation in the much needed cash injection.
“The disposal of non-core assets is part of the organisation’s turnaround strategy and target operating model, to ensure that the business invests in relevant assets, which are in line and focused on the core business of the public broadcaster. And for SABC to become and remain financially sustainable, cash injection is needed,” she said.
Meanwhile, following the suspension of the retrenchment process, the departments of communications and labour need to raise at least R1.4 billion to keep SABC operational while a way was being explored to avoid retrenchments.
It was proposed that the communications and labour departments should contribute R700 million each to rescue SABC. Labour would utilise funds from the Unemployment Insurance Fund (UIF) and the two departments would come up with the remaining amount.
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