SABC in financial crisis, admits acting CEO

2017-05-10 18:50
Acting SABC CEO James Aguma. Picture: Jan Gerber

Acting SABC CEO James Aguma. Picture: Jan Gerber

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - "We are facing a financial crisis," admitted James Aguma, acting SABC CEO to the parliamentary portfolio committee on communications on Wednesday morning.

This is in stark contrast to Aguma's and other SABC officials' previous statements to the committee on financial matters.

In February, Aguma would only go as far as to say there are "issues", and in August 2016, Aguma and others said everything was hunky dory at the public broadcaster.

Much has changed since then.

An ad hoc committee of the National Assembly made damning findings against the SABC, there is a new, interim board, a new minister, Ayanda Dlodlo, and Hlaudi Motsoeneng, former COO, has been ordered by a court not involve himself in the running of the SABC.

FOLLOW the ongoing SABC saga here


Aguma presented various reasons for the financial crisis, among them the local content quotas Motsoeneng famously instituted in 2016 without doing any research on the matter.

This resulted in a loss of audience and revenue.

According to unaudited figures, SABC radio lost R29m due to the quotas, and television R183m, Aguma told the committee.

He also said MetroFM, Good Hope FM and SABC3 lost substantial audiences.

Aguma also mentioned several other "internal dynamics" which contributed to the "financial crisis".

Among these are "a number of legal matters and litigation cases that have financial and reputational consequences for the corporation," consultants, leadership instability and "consistent negative reporting by the media on events at the SABC which ultimately results in decreased revenue collection, reputational damage and staff morale".

The SABC's funding is comprised of licence fees (11%), advertising revenue (76%), sponsorships (5%) and less than 3% from government.

Aguma then presented a vast plan to turn the public broadcaster's finances around of which the pillars are to be a financially sustainable organisation, to acquire and schedule "compelling and quality programming", a motivated and fit-for-purpose workforce and compliance with governance practices.

Democratic Alliance MP Phumzile van Damme found it odd that Aguma, who is the SABC's chief financial officer, presented this factually, as he was involved in many of the decisions.

"You were in court sitting next to Hlaudi Motsoeneng where SABC money was wasted with endless litigation," Van Damme said.

She said he should take personal responsibility and resign.

Read more on:    parliament  |  da  |  sabc  |  james aguma  |  cape town  |  media

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.


WATCH: Man films himself going down water slide upside down as things go very wrong…

What is at first an exciting tummy-turning adventure stunt, quickly turns into a scarily bad idea caught on camera. Take a look:


You won't want to miss...

WATCH: Conor McGregor: Notorious the trailer
Best date night restaurants in South Africa
WATCH: Ryan Reynolds offers fans a free tattoo in new Deadpool 2 teaser
Should you date your co-worker?
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.