SABC execs fired over concealing multimillion-rand profit share deal – report

Two SABC executives have been axed after a disciplinary process found them guilty of trying to conceal an advertising profit sharing agreement with technology company Discovery Digital.

The agreement with Discovery Digital was made in relation to the public broadcaster’s streaming platform, TelkomONE, which is now called SABC Plus.

SABC execs fired

SABC spokesperson Mmoni Seapolelo confirmed to City Press that group chief operating officer Ian Plaatjies and group executive for video entertainment Merlin Naicker had been fired by the board.

ALSO READ: SABC execs suspended for hiding multi-million rand profit share with contractor- report

Plaatjies and Naicker were suspended in February following a legal opinion from law firm Werksmans.

Group executive for sales Reginald Nxumalo resigned before he could be suspended for his role in the deal.

Executive committee misled

Werkmans said the three had concealed crucial information from the executive committee before the deal was signed in 2022. They reportedly failed to disclose that Discovery Digital would be paid 7.5% of the advertising revenue in addition to the R35 million annual fee to manage the SABC Plus platform.

The executives were found to have misled the committee when they said the SABC would be getting 100% of the advertising revenue.

ALSO READ: Can SABC survive the digital age, or will ‘Netflix and chill’ triumph?

The profit share agreement only came to light when SABC’s head of legal Advocate Ntuthuzelo Vanara questioned a clause in the contract. However, by that time, the deal had already been signed.

The Werkmans report came after an internal audit by the SABC found that the three executives had concealed parts of the agreement. It also found the three had not acted in the best financial interests of the public broadcaster.

SABC’s cashflow challenges

The deal with Discovery Digital was signed as the public broadcaster struggles to run as a viable business.

ALSO READ: SSA’s reported targeting of SABC head of news Moshoeshoe Monare condemned

In August 2023, it was revealed that the SABC had failed to record a profit in almost 10 years.

In June 2023, SABC CFO Yolande van Biljon warned that the broadcaster could not keep up with operational costs and was at risk of going into business rescue.

The memo also projected a R1 billion loss for the 2022/23 financial year.

Additional reporting by Vukosi Maluleke