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Communications committee calls for public funding for SABC to avert ‘existential crisis’

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Communications committee calls for public funding for SABC to avert ‘existential crisis’

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28th August 2024

By: Thabi Shomolekae
Creamer Media Senior Writer

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Portfolio Committee on Communications and Digital Technologies chairperson Khusela Sangoni Diko said that the South African Broadcasting Corporation’s (SABC’s) funding issue is “a burning platform” which, if left unresolved, could be an "urgent existential crisis" to the public broadcaster.

The committee wants greater public funding of the SABC so that it can deliver on its legislative public service mandate.

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This view was expressed on Tuesday after a briefing from the broadcaster on its progress in implementing its performance and turnaround strategy.

Diko pointed out that the SABC’s public mandate was funded partly, up to 56% - government grants accounted for 45% of this and TV licences accounted for 11%.

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“In the current financial year alone, the unfunded mandate will cost R2.1-billion, which includes R829-million for content, R453-million for signal distribution and R886-million for operational overhead allocations. The SABC generates up to 83% of its revenue from commercial activities, including selling of airtime, content exploitation and advertising,” she added.

The committee said it supported greater public funding of the SABC and called on the public broadcaster and the Department of Communications and Digital Technologies to suggest funding options for the committee’s consideration, using the SABC Bill currently before Parliament.

Diko noted that the Minister of Communications and Digital Technologies should “work hard to foster public and private partnerships”, as well as develop ways to regulate over-the-top services.

Meanwhile, the committee congratulated the SABC on “significant progress” in implementing its performance and turnaround strategy.

The committee noted a projection of reduced financial loss from R1.1-billion incurred in the 2023/24 financial year to R500-million by the end of the current financial year.

The committee also welcomed the department’s intervention to mediate between the SABC and Sentech on the R1-billion debt owed to Sentech.

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