DA wants ‘broke’ SABC to account for inability to pay providers for July

After the SABC circulated a letter to service providers and producers on Monday informing them that they would need to “defer” payments that were due at the end of July, they may have to explain their cash problems to parliament.

The broadcaster said it was “under pressure in the short to medium term in respect of cash flow due to the current liquidity challenge experienced”.

A letter sent by the SABC to suppliers and producers, informing them that they won’t be paid for work done in July. Picture: Twitter.

DA shadow minister of communications Phumzile Van Damme issued a statement on Thursday saying that it wanted the public broadcaster to answer to parliament over the letter and the deferred payment.

“On Wednesday, a letter circulated in which the SABC’s Group Executive: Television, Nomsa Philiso, informed the public broadcaster’s service providers and producers that it would not be able to pay them for the month of July ‘due to the current liquidity challenge experienced’,” Van Damme said.

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“The authenticity of this letter has since been confirmed in the media by the SABC’s spokesperson, Kaizer Kganyago. It is disappointing that the public once again has to be informed about the SABC’s financial challenges through media reports,” she continued.

Van Damme said the public broadcaster should have reported to parliament’s communications committee “in the interest of transparency and openness”.

“The financial crisis at the SABC has a direct impact on job security for many, as reports suggest that five production companies have been affected by the SABC’s failure to pay its bills,” said Van Damme.

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