SABC on the brink of business rescue, report

The SABC is once again tethering on the brink of financial collapse, so much so the public broadcaster may apply for business rescue.

According to a report by the Sunday Times, CFO Yolande van Biljon said the worst case scenario would see the SABC suffer the same fate as state-owned postal services, which is now in provisional liquidation.

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R1 billion loss reported

The broadcaster looks set to announce a loss north of R1 billion for the March 2023 financial year, with load shedding highlighted as the biggest culprit hindering the SABC’s performance.

Should the SABC be placed under liquidation, it would be the second SOE under the Department of Communications to approach the court with a business rescue plan.

The publication also reports that van Biljon sounded the alarm bells a month back in a memo to SABC board chair Khathutshelo Ramukumba, but a month later the board is yet to intervene.

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Day zero

The memorandum also revealed, that in May, the broadcasters finance department was asked to “lead a plan to mitigate or manage “day zero”.

At that point available cash to settle obligations by month end was R60 million short despite the corporation not having paid its monthly instalment to Sentech for about a year. 

“Day zero” is the day the SABC would no longer be able to pay staff salaries, which was one of the reasons it got a R3.2 billion bailout from the government in 2019. 

The board, which was appointed in mid-April has reportedly not even discussed a strategy, not has it taken any resolution in writing.

The SABC has been left without an accounting authority for six months prior to April when President Cyril Ramaphosa failed to appoint a executives timeously.

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